No. 5/2014. Information Bulletin

Transcription

1 No. 5/2014 Information Bulletin

2 No. 5/2014 Information Bulletin Warsaw, 2014

3 Compiled from NBP materials by the Department of Statistics as at July 14, Layout and print: NBP Printshop Published by: Narodowy Bank Polski Education and Publishing Department ul. Świętokrzyska 11/21, Warszawa, Poland phone: (48) , ISSN Copyright Narodowy Bank Polski, 2014

4 Contents Chapter 1 Economic developments 5 Chapter 2 Monetary developments 11 Chapter 3 Balance of payments in Poland in May Balance on current and capital account Balance of EU transfers Financial account Non-resident investment in Poland Polish investment abroad Official reserve assets 22 Chapter 4 Key decisions of the Monetary Policy Council 23 Chapter 5 Statistical annex Tables Charts Seasonally adjusted time series Methodological notes 81

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6 Chapter 1 Economic developments

7 Chapter 1 Economic developments According to the Central Statistical Office (CSO) data published in May 2014 the industrial output amounted to 4.4% y/y versus 5.4% y/y the month before. Adjusted for seasonal factors the overall industrial output increased by 2.7% y/y when compared with the corresponding month of the previous year. Increase in output was registered in manufacturing (up by 5.7% y/y). Decrease in industrial output prices was reported for gas, electricity and hot water supply (1.7% y/y) and mining (8.7% y/y). Increase in industrial output, when compared with the corresponding period of the previous year, was reported for 27 (of 34) branches of industry, 1 the increase in sales was reported for furniture (18.3% y/y), machinery and equipment (13.2% y/y), metal products (11.6% y/y), other non-metallic mineral products (4.6% y/y), rubber and plastics (9.1% y/y) and food products (2.3% y/y). In April 2014, construction and assembly production for enterprises with more than 9 employees was by 10% higher when compared with the corresponding period of the previous year. In April 2014, the above indicator stood at 12.2% y/y. Adjusted for seasonal factors the construction and assembly production increased by 8.3% y/y. In May, the annual PPI indicator equaled to -1% y/y versus 0.7% y/y a month before. Decrease in industrial output prices was reported for manufacturing (1% y/y), and in mining (6.1% y/y). Increase in industrial output prices was reported for gas electricity and hot water supply (1% y/y). According to the CSO data for April , among branches of manufacturing being major employers decrease in prices was reported for metal products (1.6%), other non-metallic mineral products (1.2% y/y), motor vehicles, trailer and semi-trailers (1.1% y/y), rubber and plastics (0.9% y/y), food products (0.8% y/y) and furniture (0.4% y/y). Increase was reported in machinery and equipment (2% y/y). In May 2013, construction and assembly production prices decreased by 1.4% y/y versus 1.5% y/y the previous month. Increase in the CPI for May was 0.2% versus 0.3% y/y in April. Increase in prices was reported for alcoholic beverages and tobacco (3.9%y/y and healthcare (0.3% y/y). Decrease in prices was reported in footwear and apparel (4.6% y/y), telecommunication services (1.1 % y/y) transportation (0.1% y/y) )and food and non-alcoholic beverages (by 0.8% y/y). In May 2014, the average employment rate in the enterprise sector stood at 5515 thousand up by 0.7% (36 thousand) when compared with a year before. Increase in employment was reported for manufacturing (2% y/y). Decrease in employment was reported for gas electricity and hot water supply (4.7% y/y) as well as in mining (5.9% y/y). 1 Branches of manufacturing with average employment over 100 thousand persons 2 Total industrial output prices and prices for the three major sections combined: mining and quarrying, manufacturing and electricity, gas and hot water supply are published by the CSO in advance to detailed data on individual sections 6 Narodowy Bank Polski

8 Economic developments Chart 1.1 Indices of gross domestic product (corresponding period of the previous year = 100) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Chart 1.2 Sold production of industry (corresponding period of the previous year = 100) May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Total Mining and guarrying Manufacturing Electricity, gas and water supply Chart 1.3 Sold production of industry prices indices (corresponding period of the previous year = 100) May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Total Manufacturing Mining and guarrying Electricity, gas and water supply Construction and assembly roduction Information Bulletin 5/2014 7

9 Chapter 1 Chart 1.4 Selected prices of consumer goods and services (corresponding period of the previous year = 100) May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Total Alcoholic beverages and tobacco products Housing Transport Foods and non-alcoholic beverages Clothing and footwear Health care Communication Chart 1.5 Average paid employment in enterprise sector (corresponding period of the previous year = 100) May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Total Mining and guarrying Manufacturing Electricity, gas and water supply Construction In non-industrial sections, an increase in average wages and salaries was reported in furniture (6.6% y/y), vehicles, trailers and semi-trailers (5.3% y/y), rubber and plastics (4.8% y/y), as well as other metal products (3.4% y/y), food products (0.5% y/y) and other metallic non-mineral products (0.6% y/y). Decrease in employment was reported for machinery and equipment (down by 0.5% y/y). In non-industrial sections an increase in employment was in information and communication (3% y/y), administration and support section (2.1% y/y) in trade and repair of motor vehicles (1.3% y/y). Transportation and storage and accommodation and catering remained at the level reported last year. Decrease in employment was reported in construction (7.2% y/y). 8 Narodowy Bank Polski

10 Economic developments Chart 1.6 Registered unemployment persons (corresponding period of the previous year = 100 and unempoyment rate (%) 14,5 14,0 13,5 13,0 12,5 Unemployment rate 90 May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May 12,0 Registered unemployment persons Unemployment rate Chart 1.7 Average monthly wages and salaries in enterprise sector (corresponding period of the previous year = 100) May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Total Mining and guarrying Manufacturing Electricity, gas and water supply Construction The number of registered unemployed amounted to 1986,7 thousand, down by thousand (8.7%) when compared with a year ago. The unemployment rate amounted to 12.5% versus 13.5% in the corresponding period of Average monthly gross wages and salaries in the enterprise sector stood at PLN 3878 and thus were 4.8% higher when compared to a year ago. Increase in wages and salaries was reported for manufacturing (5.9% y/y) as well as gas electricity and hot water supply (4.9% y/y) and mining (2.7% y/y). In manufacturing, an increase in average wages and salaries was reported in machinery and equipment (10.2%), metal products (9.4% y/y), furniture (6.2% y/y), rubber and plastics (4.7% y/y), food products (4.6% y/y), other non-metallic mineral products (4.5% y/y) as well as motor vehicles, trailers and semi-trailers (3.2% y/y). Information Bulletin 5/2014 9

11 Chapter 1 In non-industrial sections increase in wages and salaries was noted for construction (8.3% y/y), information and communication section (5.5% y/y), administration and support section (4.3% y/y), accommodation and catering (4.1% y/y), transportation and storage (3.8% y/y) as well as trade and repair of motor vehicles (3.7% y/y). May 2014 brought revenues of the national budget at the level of PLN billion, whereas its expenditure amounted to PLN billion. Revenues were higher when compared to the corresponding period of the previous year by 6.8% and expenditure was lower by 0.8% and accounted for 41.4% and 42.3% of the budget assumptions for Central budget deficit stood at PLN 22.5 billion versus the assumed annual deficit of PLN 47.5 billion. Inflows from indirect taxes amounted to PLN 77.5 billion and increased when compared with last year by 13.2%. Inflows from corporate income tax increased by PLN 11.1 billion i.e. 0.7%. Inflow from personal income tax stood at PLN 16.8 billion, up by 4.6% when compared with the previous year. 10 Narodowy Bank Polski

12 Chapter 2 Monetary developments

13 Chapter 2 Monetary developments The Monetary Policy Council during its session on 6-7 May 2014 left basic NBP interest rates unchanged at the following levels: reference rate 2.5%, lombard rate 4%, deposit rate 1%, rediscount rate 2.75%. During the May reserve maintenance period 3 the POLONIA index deviation against the reference rate equaled to 4 basis points versus 11 basis points in the previous month. Shortterm liquidity of the banking sector measured as a total of the NBP main operations, finetuning operations and standing facilities stood at PLN billion, down by PLN 2.5 billion when compared with the pervious reserve maintenance period. Average open market operations amounted to PLN billion (versus PLN 111 billion in the previous month), of which main operations stood at PLN 108 billion. Throughout the reserve maintenance period the average daily recourse to the deposit facility totaled PLN 207 million (versus PLN 847 million in the previous period). In May 2014 average interest rates on zloty denominated loans to non-financial corporations 4 went down from 4.5% to 4.4%. Interest rates on loans to sole proprietorships went down from 6.8% to 6.5%. As regards zloty denominated loans to households interest rates for loans for house purchases remained at 5.3%, while interest rates for loans for consumption decreased from 13.6% to 13.5%. Interest rates on deposits of non-financial corporations and deposits of households remained at 2.6% and 2.4% respectively. In May 2014, the value of M3 increased by PLN 5 billion (0.5%) and stood at PLN billion. Its annual growth rate decreased by 0.2 percentage points and amounted at 5.2% y/y. The value of monthly transactions amounted to PLN 5.8 billion 5. 3 Reserve maintenance period in question refers to the period from to Interest rates on loans and deposits refer to new business. For further information regarding the calculation of average interest rates on loans and deposits refer to the NBP website at homen.aspx?f=en/statystyka/oproc/mir_new/mir_new.html. 5 Monthly transactions are calculated as the difference in outstanding amounts between two subsequent reporting months adjusted for changes arising from non-transactions, i.e. exchange rate changes, revaluations, reclassifications and other adjustments such as errors in data reported by banks. The methodology for the compilation of transactions is described in Statystyka-transakcji-metodyka_EN.pdf. 12 Narodowy Bank Polski

14 Monetary developments Chart 2.1 Interest rates on the inter bank versus basic interest rates of the NBP % POLONIA Reference rate WIBOR ON Lombard rate WIBOR 3M NBP deposit rate Chart 2.2 Average MFI deposit interest rates on new bussines, PLN denominated 5.0 % May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Non-financial corporations Households Components of the M1 aggregate with high liquidity went down by 1.4 percentage points to 9.7% y/y when compared with the previous month. In May 2014 currency in circulation increased by PLN 0.4 billion i.e. 0.3% and stood at PLN Its annual growth rate increased by 0.7 percentage points and amounted to 11% y/y. Its monthly transactions were lower by 1.5 percentage points when compared with the previous month and stood at 9.5%. M3 liquidity measured as the share of currency in circulation and overnight deposits in M3 went up by 0.7 percentage point and stood at 56.3%. M1 liquidity measured as the share of currency in circulation in M1 decreased by 0.3 percentage point up to 21.5%. Information Bulletin 5/

15 share Chapter 2 Chart 2.3 Average MFI loan interest rates on new business, PLN denominated % May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Households (loans for consumption) Households (loans for house purchases) Non-financial corporations Chart 2.4 Share of currency in circulation and overnight deposits of domestic residents in M3, M1 and M3-M1 growth (corresponding period of the previous year = 100) 130 % growth May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May 50 M3 M1 M1 Share of currency in circulation and overnight deposits in M3 Deposits and other liabilities included in M3 increased in May 2014 by 4.9 billion (0.6%) and reached the level of PLN billion. Monthly transactions increased by 0.1 percentage points and stood at 5.5%. Increase was reported in deposits of non-financial corporations (PLN 3.4 billion; 1.8%), nonmonetary financial institutions (PLN 1.1 billion; 2.3%), local government (PLN 1.4 billion 4.5%) and non-profit institutions serving households (by 0.3 billion, i.e. 1.8%). Decrease was reported in deposits of households (PLN 0.7 billion; 0.1%) and social security funds (PLN 0.2 billion; 4.8%). Among counterparts to M3, external assets net went up by PLN 15.3 billion, i.e. 12.1%, to the level of PLN billion and credit to domestic sectors went up by PLN 2.3 billion i.e. 0.2% 14 Narodowy Bank Polski

16 Monetary developments Chart 2.5 Share of currency in circulation in M1 % May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Chart 2.6 Deposits and other liabilities of MFIs to non-financial corporations and households included in M3 (corresponding period of the previous year = 100) May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Non-financial corporations Households Chart 2.7 MFI loans and other claims on non-financial corporations and households (corresponding period of the previous year = 100) May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Non-financial corporations Households Information Bulletin 5/

17 Chapter 2 Chart 2.8 Bank loans to households (corresponding period of the previous year = 100) May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Total Loans for house purchases Loans for consumption Chart 2.9 Bank loans to non-financial corporations (corresponding period of the previous year = 100) May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Total Over 1 year up to 5 years Up to 1 year (including current accounts) Over 5 years and stood at PLN billion 6. Decrease in net credit to central government by PLN 14.2 billion (9.1%) to PLN billion and increase in long term loans by PLN 2.5 billion (0.9%) to PLN billion also contributed to money supply. MFI 7 credit to non-financial corporations increased by PLN 2.5 billion (0.9%) and reached PLN billion. The value of monthly transactions amounted to PLN 3.4 billion. The annual growth rate in credit to non-financial corporations increased by 0.3 percentage points to 5.3%. 6 The category credit comprises loans, holdings of debt and equity securities, and other receivables, e.g. debt purchased, guarantees and warrantees. Domestic sectors include non-monetary financial institutions, non-financial corporations, non-profit institutions serving households, local government and social security funds. 7 Except credit against securities issued. 16 Narodowy Bank Polski

18 Monetary developments Chart 2.10 Share of monetary aggregates and MFI loans and other claims on other domestic residents in GDP % Q1 Q Q3 Q4 Q1 Q Q3 Q4 Q M1/GDP M3/GDP Loans/GDP Loans with maturity up to 1 year, including overdrafts, went up by 4% y/y and loans with maturity from 1 year up to 5 years increased by 14.1% y/y. Loans with maturity over 5 years increased by 1.6% y/y. MFI credit to households increased in May 2014 by PLN 1.5 billion (0.3%) and stood at PLN billion. The value of monthly transactions amounted to PLN 3.7 billion. The annual growth rate in credit to households decreased by 1.1 percentage points down to 4.7%. Housing loans increased by 3.1% y/y. The growth in consumer loans stood at 5.4% y/y. According to data for Q1 2014, the monetization of national economy varied. The M1 to GDP ratio decreased by 0.2 percentage points and stood at 33.8%, and the M3 to GDP ratio by 0.6 percentage points and stood at 59.2%. In May 2014, the nominal exchange rate of the zloty 8 appreciated by 1.4% against EUR, 0.02% against USD, by 1.5% against CHF, by 0.5% against GBP. 8 Exchange rate changes between end April 2013 and end May 2014 are calculated as the difference between end-month average exchange rates quoted by the NBP Information Bulletin 5/

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20 Chapter 3 Balance of payments in Poland in May 2014

21 Chapter 3 Balance of Payments in Poland in May 2014 Components of monthly bop are estimated based on monthly and quarterly information reported by residents involved in transactions with non-residents, public statistics surveys as well as administrative data sources. This version of bop is preliminary and may be subject to further revisions. 3.1 Balance on Current and Capital Account Current account balance in May 2014 was positive and amounted to EUR 280 million. The positive balance of the current account has been influenced by: positive balance of current transfers (EUR million), services (EUR 464 million) and trade in goods (EUR 175 million) as well as negative balance of income (EUR million). In the corresponding period of the previous year current account balance was negative and stood at EUR 176 million. Total balance of current and capital accounts was positive and amounted to EUR million. In May 2014, exports was estimated at EUR million while imports was estimated at EUR million. When compared with data for May 2013 exports in goods increased by EUR million i.e. 11.3% while imports went up by EUR million i.e. 9.9%. Surplus in goods stood at EUR 175 million, increasing by EUR 174 million when compared with May Credits on services increased when compared with May 2013 by EUR 42 million i.e. 1.6% and stood at EUR million. Debits increased by EUR 90 million i.e. 4.3% and stood at EUR million. Positive balance of services (standing at EUR 464 million) comprised: positive balance of transportation (EUR 321 million), travel (EUR 226 million) and negative balance of other services (EUR 83 million). In May 2014, the balance of income was negative and amounted to EUR million. In the corresponding period of 2013 this balance was also negative and stood at EUR million. In May 2014, balance of income comprised: positive balance of compensation of employees (EUR 100 million) and negative balance of investment income (EUR million). The negative balance of investment income was primarily driven by foreign direct investors income on their capital involvement in Polish companies amounting to EUR million (of which: dividends amounting to EUR million, negative reinvested earnings EUR 117 million, and interest on debt instruments EUR 185 million). Negative balance of income was also influenced by non-residents income on portfolio investments i.e. interest on debt securities issued by Polish entities (EUR 431 million) as well as interest due to loans received by Polish entities (EUR 163 million). 3.2 Balance of EU Transfers In May 2014, the balance of EU transfers was positive and amounted to EUR million. Inflow in current transfers amounted to EUR million (mostly owing to inflow from 20 Narodowy Bank Polski

22 Balance of Payments in Poland in May Cummulated b May April May June 2012 May 2013 June 2013 May 2014 a A. Current account Trade in goods Exports f.o.b Imports f.o.b Balance of services Credits Debits Balance of income Credits Debits Balance of current transfers Credits Debits B. Capital account Credits Debits C. Financial account Polish investment abroad Foreign direct investment in Poland Portfolio investment -assets Equity securities Debt securities Portfolio investment liabilities Equity securities Debt securities Other investment assets NBP Goverment sector MFI (NBP excluded) Other sectors Other investment liabilities NBP Goverment sector MFI (NBP excluded) Other sectors Financial derivatives D. Errors and ommissions Total A D E. Official reserve assets a Preliminary information. b Cumulated data are presented progressively in the 12-month perspective. Common Agricultural Policy) and in capital transfers it stood at million (mostly owing to inflow of subsidies within Cohesion Fund and European Regional Development Fund). EU membership premiums paid amounted to EUR 348 million. 3.3 Financial Account In May 2014, balance on financial account was negative and amounted to EUR million. Capital invested Poland by non-residents increased by EUR million net (inflow of Information Bulletin 5/

23 Chapter 3 capital). At the same time residents increased their external assets net by EUR million (Polish investment abroad). 3.4 Non-resident investment in Poland Positive balance of foreign investment in Poland has been greatly influenced by inflow of capital against portfolio investment. Net inflow of capital against foreign direct investment and other investment reached similar levels. Balance on foreign direct investment in Poland was positive and stood at EUR million. This balance comprised net inflow of funds increasing equity capital of Polish direct investment companies (EUR 1 151), inflow of capital against debt instruments (EUR 197 million) and negative reinvested earnings (EUR 117 million). In May 2014 positive balance of foreign portfolio investment stood at EUR million. Nonresidents investment in debt securities amounted to EUR million (mostly Treasury bills issued on domestic market). At the same time inflow of capital against non-resident investment in equity securities (increase in liabilities by EUR 685 million) was observed. Balance of other non-resident investment in Poland was positive and stood at EUR million. This item has been mostly influenced by increase in liabilities of NBP by EUR 696 million, banking sectors by EUR 567 million and other sectors by EUR 81 million. At the same time liabilities of the general government decreased by EUR 90 million. 3.5 Polish investment abroad In May 2014, balance on Polish investment abroad was negative and stood at EUR million, which translates into an increase in assets. Residents increased their external assets on other investment by EUR million (deposits in banks abroad placed by financial entities), direct investment by EUR million and portfolio investment by EUR 460 million. 3.6 Official Reserve Assets NBP s own transactions and NBP client transactions resulted in an increase in the value of reserve assets by EUR 468 million. Official reserve assets at the end of May 2014 amounted to EUR million. Official reserve assets at the end of May 2014 amounted to EUR million 22 Narodowy Bank Polski

24 Chapter 4 Key decisions of the Monetary Policy Council

25 Chapter 4 Key Decisions of the Monetary Policy Council Resolution of the Monetary Policy Council No 4/2014 dated 20 May 2014 on approving NBP operations report for Narodowy Bank Polski

26 Chapter 5 Statistical annex

27 Chapter Tables Table Basic Statistical Data Period current prices 1. Industrial output 2. Construction output 3. Consumer Price Index 4. Producer Price Index the same month previous year = 100 constant prices previous month = 100 current prices the same month previous year = 100 constant prices previous month = 100 the same month previous year = 100 previous month = 100 December previous year = 100 the same month previous year = 100 previous month = 100 million zloty % % million zloty % % % % % % % Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Narodowy Bank Polski

28 Statistical annex. Tables Table Basic Statistical Data (cont d) Period 5. Construction Price Index the same month previous previous month year = 100 = Number of employed, corporate sector total 7. Average employment, corporate sector total 8. Number of unemployed 9. Unemployment rate 10. Average monthly employee earnings, gross, corporate sector 11. National Budget revenue & expenditure revenue expenditure financial surplus/ deficit and net foreign lending/ borrowing % % thousands thousands thousands % zloty million zloty million zloty million zloty Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Information Bulletin 5/

29 Chapter 5 Table Basic Statistical Data (cont d) Period total revenues of which: sales of goods & services operating costs total of which: cost of sales pre-tax profit/loss 12. Corporate financial performance statutory deductions net profit/loss cost to sales ratio net Margin accounts quick liquidity ratio assets and associ- total current receivable ated claims accounts payable million zloty million zloty million zloty million zloty million zloty million zloty million zloty % % % million zloty million zloty million zloty Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Narodowy Bank Polski

30 Statistical annex. Tables Table Financial Market Basic Information 1. NBP interest rates 2. Reserve requirement Period Reference rate Lombard rate Deposit rate Rediscount rate Discount rate Reserve requirement ratio on zloty deposits Reserve requirement ratio on foreign currency deposits (zloty equivalent) demand time demand time Reserve requirement ratio on repo operations Interest on reserve requirement Total required reserves held % % % % % % % % % % % million zloty Dec a Jan a Feb a Mar a Apr a May a Jun a Jul a Aug a Sep a Oct a Nov a Dec a Jan a Feb a Mar a Apr a May a Jun a Jul a Aug a Sep a Oct a Nov a Dec a Jan a Feb a Mar a Apr a May a Jun a Jul a Aug a Sep a Oct a Nov a Dec a Jan a Feb a Mar a Apr a May a a Of the rediscount rate. Information Bulletin 5/

31 Chapter 5 Table Financial Market Basic Information (cont d) 3. Treasury bill tenders Period Number of tenders during month Face value of bills offered for sale Demand Declared by bidders (at face value) Face value of bills sold Yield on bills purchased, weighted average Bills outstanding from tender sales at month end (purchase prices) million zloty million zloty million zloty % million zloty Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Narodowy Bank Polski

32 Statistical annex. Tables Table Financial Market Basic Information (cont d) 4. Tenders for NBP money-market bills Period Number of tenders during month Face value of bills offered for sale Demand Declared by bidders (at face value) Face value of bills sold Yield on bills purchased, weighted average Bills outstanding from tender sales at month end (purchase prices) million zloty million zloty million zloty % million zloty Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Information Bulletin 5/

33 Chapter 5 Table Financial Market Basic Information (cont d) Period Number of companies at month end Capitalisation at month end P/E ratio at month end Warsaw Stock Exchange Index (WIG) at month end 5. Data on trading sessions of Warsaw Stock Exchange WIG monthly average mwig40 at month end mwig40 monthly average swig80 at month end 1 swig80 monthly average 1 Monthly turnover Turnover ratio million zloty million zloty % Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Since March the WIRR index has been replaced by swig80 index. 32 Narodowy Bank Polski

34 Statistical annex. Tables Table PLN/USD and PLN/EUR Daily Exchange Rates Days January 2014 February 2014 March 2014 April 2014 NBP average NBP average NBP average NBP average exchange rates USD/EUR exchange rates USD/EUR exchange rates USD/EUR exchange rates PLN/USD PLN/EUR PLN/USD PLN/EUR PLN/USD PLN/EUR PLN/USD PLN/EUR Average monthly rate X X X X USD/EUR Information Bulletin 5/

35 Chapter 5 Table Average MFI Interest Rates on Outstanding Amounts, PLN Denominated Deposits in PLN Loans in PLN Sector Category Original maturity, peroid of notice No households and non-profit institutions serving households non-financial corporations households and non-profit institutions serving households non-financial corporations with agreed maturity with agreed maturity May June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May overnight up to 2 years over 2 years n/a n/a total overnight up to 2 years over 2 years total total, overnight excluded for consumption for house purchases for other purposes bank overdaft credit cards up to 1 year maturity over 1 and up to 5 years maturity over 5 years maturity total up to 5 years maturity over 5 years maturity total up to 1 year maturity over 1 and up to 5 years maturity over 5 years maturity total total, overdraft excluded bank overdaft credit cards up to 1 year maturity over 1 and up to 5 years maturity over 5 years maturity total, overdraft excluded total, overdraft excluded Narodowy Bank Polski

36 Statistical annex. Tables Table Average MFI Interest Rates on New Business, PLN Denominated Deposits in PLN Loans in PLN Sector Category Original maturity, initial rate fixation No households and non-profit institutions serving households non-financial corporations households and non-profit institutions serving households non-financial corporations with agreed maturity with agreed maturity for consumption for house purchases for sole proprietors and unincorporated partnerships for other purposes contracts up to PLN 1 million, overdraft excluded contracts over PLN 1 milion up to 4 million, overdraft excluded contracts over PLN 4 million, overdraft excluded May June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May up to 1 month over 1 and up to 3 months over 3 and up to 6 months over 6 months and up to 1 year over 1 year n/a n/a n/a n/a 2.7 total up to 1 month over 1 and up to 3 months over 3 and up to 6 months over 6 months and up to 1 year over 1 year total floating rate and up to 3 months initial rate fixation over 3 months and up to 1 year initial rate fixation over 1 year initial rate fixation total the annual percentage rate of charge (APRC) floating rate and up to 3 months initial rate fixation 19 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a over 3 months and up to 1 year initial rate fixation 20 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a over 1 year initial rate fixation 21 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a total the annual percentage rate of charge (APRC) floating rate and up to 3 months initial rate fixation 24 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a over 3 months and up to 1 year initial rate fixation 25 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a over 1 year initial rate fixation 26 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a total floating rate and up to 3 months initial rate fixation 28 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a over 3 months and up to 1 year initial rate fixation 29 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a over 1 year initial rate fixation 30 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a total total floating rate and up to 3 months initial rate fixation over 3 months and up to 1 year initial rate fixation over 1 year initial rate fixation 35 total floating rate and up to 1 year initial rate fixation,with original maturity over 1 year* floating rate and up to 3 months initial rate fixation over 3 months and up to 1 year initial rate fixation over 1 year initial rate fixation 40 total floating rate and up to 1 year initial rate fixation,with original maturity over 1 year* floating rate and up to 3 months initial rate fixation over 3 months and up to 1 year initial rate fixation 44 over 1 year initial rate fixation total floating rate and up to 1 year initial rate fixa tion,with original maturity over 1 year* total total * Category floating rate and up to 1 year initial rate fixation,with original maturity over 1 year comprises contracts from categories floating rate and up to 3 months initial rate fixation & over 3 months and up to 1 year initial rate fixation, but only those which original maturity is over 1 year n/a - category not available due to low importance and confidentiality issues; due to the same reason following categories were merged: 34 & 35, 39 & 40 and 44 & 45. Information Bulletin 5/

37 Chapter 5 Table Average MFI Interest Rates on New Business, EUR Denominated May June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May Sector Category Original maturity, initial rate fixation No rachunki bieżące* up to 1 month households and non-profit institutions serving households with agreed maturity over 1 and up to 3 months over 3 and up to 6 months over 6 months and up to 1 year over 1 year Deposits in EUR total overnight* up to 1 month non-financial corporations with agreed maturity over 1 and up to 3 months over 3 and up to 6 months n/a over 6 months and up to 1 year over 1 year n/a n/a n/a n/a 0.2 total total bank overdaft* Loans in EUR households and non-profit institutions serving households for consumption for house purchases total n/a n/a n/a n/a n/a - - the annual percentage rate of charge (APRC) n/a n/a n/a n/a n/a - - total n/a n/a n/a the annual percentage rate of charge (APRC) n/a n/a n/a for other purposes total, overdraft excluded bank overdaft* non-financial corporations contracts up to EUR 1 million contracts over EUR 1 million total, overdraft excluded total *Category calculated on a basis of an oustanding amounts. Excluded from total average. n/a category not available due to low importance and confidentiality issues 36 Narodowy Bank Polski

38 Statistical annex. Tables Table Number of Accounts Operated by Commercial Banks as of 31 March 2014 Account type 31 March 2014 Resident Non-resident Total Individuals Zloty deposits Ovenight deposits of which - overnight checking deposits of which - with Internet/PC access Deposits with agreed maturity Blocked deposits Deposits redeemable at notice Foreign currency deposits Overnight deposits of which - overnight checking deposits of which - with Internet/PC access Deposits with agreed maturity Blocked deposits Deposits redeemable at notice Farmers, private entrepreneurs Zloty deposits Overnight deposits of which - overnight checking deposits of which - with Internet/PC access Deposits with agreed maturity Blocked deposits Deposits redeemable at notice Foreign currency deposits Overnight deposits of which - overnight checking deposits of which - with Internet/PC access Deposits with agreed maturity Blocked deposits Deposits redeemable at notice Non-financial corporations, non-monetary financial institutions, non-profit institutions serving households Zloty deposits Overnight deposits of which - overnight checking deposits of which - with Internet/PC access Deposits with agreed maturity Blocked deposits Deposits redeemable at notice Foreign currency deposits Overnight deposits of which - overnight checking deposits of which - with Internet/PC access Deposits with agreed maturity Blocked deposits Deposits redeemable at notice General Government Zloty deposits Overnight deposits of which - overnight checking deposits of which - with Internet/PC access Deposits with agreed maturity Blocked deposits Deposits redeemable at notice Foreign currency deposits Overnight deposits of which - overnight checking deposits of which - with Internet/PC access Deposits with agreed maturity Blocked deposits Deposits redeemable at notice Information Bulletin 5/

39 Chapter 5 Table Balance sheet of Narodowy Bank Polski (million zloty) Assets Period Loans to domestic residents Other monetary financial institutions General government Other domestic residents 1 Holdings of securities other than shares issued by domestic residents Other monetary financial institutions Gene ral government Holdings of shares/ other equity issued by domestic residents Other monetary financial institutions Other domestic residents 1 External assets Fixed assets 2 Remaining assets Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Non-monetary financial institutions and non-financial sector. 2 Excluding financial fixed assets included in column 8. Total assets 38 Narodowy Bank Polski

40 Statistical annex. Tables Table Balance sheet of Narodowy Bank Polski (million zloty) Liabilities Period Currency in circulation Deposits of domestic residents Other monetary financial institutions Central government Other domestic residents(1) Debt securities issued Capital and reserves Tier-1 capital Reserves External liabilities Remaining liabilities Total liabilities Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Non-monetary financial institutions and non-financial sector. Information Bulletin 5/

41 Chapter 5 Table Aggregated balance sheet of other monetary financial institutions (million zloty) Assets Period Loans to domestic residents Monetary financial institutions General government Other domestic residents 1 Holdings of securities other than shares issued by domestic residents Monetary financial institutions General government Other domestic residents Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Non-monetary financial institutions and non-financial sector. 40 Narodowy Bank Polski

42 Statistical annex. Tables Table Aggregated balance sheet of other monetary financial institutions (million zloty) (cont d) Assets Period Money Market Fund Shares/ Units Holdings of shares/other equity issued by domestic residents Monetary financial institutions Other domestic residents 1 External assets Fixed assets 2 Remaining assets Total assets Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Non-monetary financial institutions and non-financial sector. 2 Excluding financial fixed assets included in column 10. Information Bulletin 5/

43 Chapter 5 Table Aggregated balance sheet of other monetary financial institutions (million zloty) Liabilities Period Deposits of domestic residents Monetary financial institutions Central government Other domestic residents 1 overnight with agreed maturity redeemable at notice repurchase agreements Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Non-monetary financial institutions, local government, social security funds and non-financial sector. 42 Narodowy Bank Polski

44 Statistical annex. Tables Table Aggregated balance sheet of other monetary financial institutions (million zloty) (cont d) Liabilities Period Money Market Fund Shares/Units Debt securities issued Capital and reserves Tier-1 capital Tier-2 capital Reserves External liabilities Remaining liabilities Total liabilities Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Information Bulletin 5/

45 Chapter 5 Table Loans to domestic residents households and non-financial corporations (million zloty) Period Total Polish zloty Non-financial corporations Loans Other claims Loans Other claims Total foreign Polish foreign Polish foreign Polish foreign individuals currencies individuals zloty individuals currencies individuals zloty currencies zloty currencies Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Table Deposits and other liabilities households and non-financial corporations (million zloty) Period Total Polish zloty Households Non-financial corporations Deposits Other liabilities Deposits Other liabilities Total foreign Polish foreign Polish foreign Polish foreign individuals currencies individuals zloty individuals currencies individuals zloty currencies zloty currencies Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Narodowy Bank Polski

46 Statistical annex. Tables Table Consolidated balance sheet of monetary financial institutions (million zloty) Assets Period Loans to domestic residents General government Other domestic residents 1 Holdings of securities other than shares issued by domestic residents General government Other domestic residents 1 Holdings of shares/other equity 2 issued by other domestic residents 1 External assets Fixed assets 3 Remaining assets Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Non-monetary financial institutions and non-financial sector. 2 Including rights issues (to Dec 2003) units in investment funds and financial fixed assets. 3 Excluding financial fixed assets incorporated in column 7. 4 Including rights issues (from Jan 2004). Total assets Information Bulletin 5/

47 Chapter 5 Table Consolidated balance sheet of monetary financial institutions (million zloty) Liabilities Period Currency in circulation Deposits of central government Deposits of other domestic residents 1 overnight with agreed maturity redeemable at notice repurchase agreements Money Market fund shares/ /units Debt securities Capital and issued reserves External liabilities Remaining liabilities Excess of inter-mfi liabilities Total liabilities Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Non-monetary financial institutions local government social security funds and non-financial sector. 46 Narodowy Bank Polski

48 Statistical annex. Tables Table M3 and counterparts (million zloty) Period Currency in circulation (excluding vault cash) Currency in circulation (including vault cash) Cash in banks vaults Overnight deposits and other liabilities Households Non- -monetary financial institutions Non-financial Non-profit institutions serving corporations households Local government Social security funds Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May M1 Information Bulletin 5/

49 Chapter 5 Table M3 and counterparts (million zloty) (cont d) Deposits and other Debt securities issued Market Money liabilities Deposits Period M2 Repurchase with agreed Non- redeemable agreements with maturity fund maturity up to Households -monetary Non- Non-profit at notice up up to 2 years shares 2 years financial -financial institutions Local Social to 3 months and blocked institutions corporations serving government security households funds deposits Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Narodowy Bank Polski

50 Statistical annex. Tables Table M3 and counterparts (million zloty) (cont d) Period M3 Net external assets External assets External liabilities Credit to other domestic residents Loans to other domestic residents Households Non-monetary financial institutions Non-financial corporations Non-profit institutions serving households Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Information Bulletin 5/

51 Chapter 5 Table M3 and counterparts (million zloty) (cont d) Period Local government Social security funds Holdings of securities other than shares non-monetary financial institutions of which issued by: non-financial corporations local government Holdings of shares/other equity non-monetary financial institutions of which: non-financial corporations Dec , Jan , Feb , Mar , Apr , May , Jun , Jul , Aug , Sep , Oct , Nov , Dec , Jan , Feb , Mar , Apr , May , Jun , Jul , Aug , Sep , Oct , Nov , Dec , Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Narodowy Bank Polski

52 Statistical annex. Tables Table M3 and counterparts (million zloty) (cont d) Period Credit to central government, net Credit to central government loans of which: debt securities issued Deposits of central government Longer-term financial liabilities Deposits with agreed maturity over 2 years and deposits redeemable at notice over 3 months Households Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Information Bulletin 5/

53 Chapter 5 Table M3 and counterparts (million zloty) (cont d) Period Non-monetary financial institutions Non-financial corporations Non-profit institutions serving households Local government Social security funds Debt securities issued with maturity over 2 years Capital and reserves Fixed assets (excluding financial fixed assets) Other items (net) Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Narodowy Bank Polski

54 Statistical annex. Tables Table Reserve money and counterparts (million zloty) Period External assets. net Official reserve assets Refinancing credit Rediscount credit Lombard credit Credit for rehabilitation programmes Credit for central government investment projects Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Other credit Overdue credit Period Open Market operations (net) Auction credit Auction deposits NBP bills Credit to central government, net Other items (net) Central Bank reserve money Currency in circulation (including vault cash) Bank current accounts Reserve requirements accounts Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Information Bulletin 5/

55 Chapter 5 Table Summary balance of payments 1 (EUR million, net flows) Years Total Current account Goods Services Income Current transfers Capital account Total Direct investment abroad Direct investment in the reporting economy Portfolio investment assets Financial account Portfolio investment liabilities Other investment assets Other investment liabilities Financial derivatives Errors and omissions Official reserve assets Q Q Q Q Q Q Q Q Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Q Q Q Q Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Q Jan Feb Mar Apr May Data on balance of payments for 2011 and 2012 was revised and data for 2013 is preliminary and will be subject to a further revision. 54 Narodowy Bank Polski

56 Statistical annex. Tables Table Balance of payments: current and capital account 1 (EUR million: gross flows) Years Current account Capital account Goods Services Income Current transfers Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Q Q Q Q Q Q Q Q Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Q Q Q Q Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Q Jan Feb Mar Apr May Data on balance of payments for 2011 and 2012 was revised and data for 2013 is preliminary and will be subject to a further revision. Information Bulletin 5/

57 Chapter 5 Table Balance of payments: service account 1 (EUR million: gross flows) Years Services Total Transport Travel Other services Credit Debit Credit Debit Credit Debit Credit Debit Q Q Q Q Q Q Q Q Q Q Q Q Q Table Balance of payments: income account 1 (EUR million: gross flows) Income Total Compensation Investment income Years of employees Total Direct investment Portfolio investment Other investment Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Q Q Q Q Q Q Q Q Q Q Q Q Q Data on balance of payments for 2011 and 2012 was revised and data for 2013 is preliminary and will be subject to a further revision. 56 Narodowy Bank Polski

58 Statistical annex. Tables Table Balance of payments: current transfer account 1 (EUR million: gross flows) Years Current transfers Total General government current transfers Other (private) current transfers Credit Debit Credit Debit Credit Debit Q Q Q Q Q Q Q Q Q Q Q Q Q Table Balance of payments: direct investment account 1 (EUR million: net flows) Polish direct investment abroad Foreign direct investment in Poland Years Total Equity capital Other capital. mostly intercompany loans Total Equity capital Other capital. mostly intercompany loans Q Q Q Q Q Q Q Q Q Q Q Q Q Data on balance of payments for 2011 and 2012 was revised and data for 2013 is preliminary and will be subject to a further revision. Information Bulletin 5/

59 Chapter 5 Table Balance of payments: portfolio investment account 1 (EUR million: net flows) Polish portfolio investment abroad Foreign portfolio investment in Poland Years Total Equity Debt Total Equity Debt Q Q Q Q Q Q Q Q Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Q Q Q Q Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Q Jan Feb Mar Apr May Data on balance of payments for 2011 and 2012 was revised and data for 2013 is preliminary and will be subject to a further revision. 58 Narodowy Bank Polski

60 Statistical annex. Tables Table Balance of payments: other investment account assets 1 Years (EUR million: net flows) Total Monetary authorities (Narodowy Bank Polski) General Government Other investment assets MFIs (excluding NBP) Total Long-term Short-term Other sector Q Q Q Q Q Q Q Q Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Q Q Q Q Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Q Jan Feb Mar Apr May Data on balance of payments for 2011 and 2012 was revised and data for 2013 is preliminary and will be subject to a further revision. Information Bulletin 5/

61 Chapter 5 Table Balance of payments: other investment account liabilities 1 Years (EUR million: net flows) Total Monetary authorities (National Bank of Poland) General Government Other investment assets MFIs (excluding NBP) Total Long-term Short-term Other sector Q Q Q Q Q Q Q Q Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Q Q Q Q Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Q Jan Feb Mar Apr May Data on balance of payments for 2011 and 2012 was revised and data for 2013 is preliminary and will be subject to a further revision. 60 Narodowy Bank Polski

62 Statistical annex. Tables Table International investment position (EUR million: assets and liabilities, end-of-period positions) Years Total assets Total Direct investment Equity (including reinvested earnings) Other capital Total Portfolio investment Assets Financial Equity Debt derivatives securities instruments Total Trade credit Other investment Loans Currency and deposits Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Other assets Reserve assets Years Total liabilities Total Direct investment Equity (including reinvested earnings) Other capital Total Liabilities Portfolio investment Financial Equity Debt derivatives securities instruments Total Trade credit Other investment Loans and advances Currency and deposits Other liabilities Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Net assets Information Bulletin 5/

63 Chapter 5 Table Official reserve assets (EUR million: end-of-period positions) Reserve assets Years Total Monetary gold Foreign exchange Special drawing Reserve In fine troy rights (SDR) position ounces in the IMF Total Currency and (millions) deposits Securities Financial derivatives Other credit Jan , Feb , Mar , Apr , May , June , July , Aug , Sep , Oct , Nov , Dec , Jan , Feb , Mar , Apr , May , June , July , Aug , Sep , Oct , Nov , Dec , Jan , Feb , Mar , Apr , May , June , July , Aug , Sep , Oct , Nov , Dec , Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Narodowy Bank Polski

64 Statistical annex. Tables Table Poland: external debt, long- and short-term 1 (EUR million) Years Total Longterm Shortterm Monetary authorities (Narodowy Bank Polski) Total Long- Shortterm term External debt Central and local government Banks Other sectors Total Longterm Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Data on external debt for 2011 and 2012 was revised and data for 2013 is preliminary and will be subject to a futher revision. Shortterm Total Longterm Shortterm Total Longterm Shortterm Information Bulletin 5/

65 Chapter 5 Table Poland: external debt, by sectors and instruments (EUR million) Narodowy Bank Polski Poland: external debt Central and local government Other investment Debt securities Other investment Years Total Total Loans Currency and deposits Other liabilities Total Total Bonds and notes Money- -market instruments Total Trade credits Loans Other liabilities Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Narodowy Bank Polski

66 Statistical annex. Tables Table Poland: external debt, by sectors and instruments (EUR million) (cont d) Poland: external debt (cont d) Banks Years Total Loans from direct investors (intercompany loans) Total Debt securities Bonds and notes Money-market instruments Total Loans Other investment Currency and deposits Other liabilities Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Information Bulletin 5/

67 Chapter 5 Table Poland: external debt, by sectors and instruments (EUR million) (cont d) Poland: external debt (cont d) Other sectors Years Total Loans from direct investors (intercompany loans) 1 Total Debt securities Bonds and notes Money-market instruments Other investment Total Trade credits 2 Loans Other liabilities Total Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q From the first Quarter 2003 trade credits received from direct investors were reclassified from trade credits to loans from direct investors. 2 From the first Quarter 2003 trade credits received from direct investors were excluded from trade credits. 66 Narodowy Bank Polski

68 Turnover Statistical annex. Charts 5.2 Charts Chart Consumer price index, January 2010 May 2014 (the same period of the previous year = 100) % Jan Mar May July 2010 Oct Nov Jan Mar May July Oct Nov Jan Mar May July Oct Nov Jan Mar May July Oct Nov Jan Mar May Chart Industrial sales, real terms, January 2010 May 2014 (the same period of the previous year =100) 115 % Jan Mar May July Oct Nov Jan Mar May July Oct Nov Jan Mar May July Oct Nov Jan Mar May July Oct Nov Jan Mar May Industrial sales, real terms Chart Warsaw stock exchange first-tier market, May 2013 May 2014 WIG '000 points billion zloty May June July Aug Sep Oct Nov Dec Jan Feb Mar Warsaw stock exchange (WIG) monthly average Apr May Total montly turnover Information Bulletin 5/

69 Chapter 5 Chart Open market operations, May 2013 May billion zloty May June July Aug Sep Oct Nov Dec Jan Feb Mar Balance of funds absorbed from the system at month's end left-hand scale Apr May Value of funds received during the month right-hand scale Chart Zloty Deposit and Lending Rates Against NBP Lombard Rate, May 2010 May % pa May July Sep Nov Jan Mar May July Sep Nov Jan Mar May July Sep Nov Jan Mar May Time deposits of households Time deposits of corporations Total consumer loans Total lending to corporations NBP lombard rate Chart T/N interest rates, May 2013 May 2014 % May WIBID June July Aug Sep 2013 Oct Nov Dec Jan Feb Mar 2014 Apr May WIBOR 68 Narodowy Bank Polski

70 Statistical annex. Charts Chart Monthly growth of monetary aggregats against inflation, May 2013 May % May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May M1 M3 Inflation Chart Annual growth of monetary aggregates against inflation, May 2013 May % May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May M1 M3 Inflation Chart PLN/USD exchange rates, May 2013 May PLN May June July Aug Sep 2013 Oct Nov Dec Jan Feb Mar 2014 Apr May NBP average PLN/USD rate (fixing) Information Bulletin 5/

71 Chapter 5 Chart PLN/EUR exchange rates, May 2013 May PLN May June July Aug Sep 2013 NBP average PLN/EUR rate (fixing) Oct Nov Dec Jan Feb Mar 2014 Apr May Chart Current account components mln euro Jan Mar May July Sep Nov Jan Mar May July Sep Nov Jan Mar May July Sep Nov Jan Mar May Balance of trade Services net Income net Current transfers net Current account net Chart Trade in goods EUR million Jan Mar May July Sep Nov Jan Mar May July Sep Nov Jan Mar May July Sep Nov Jan Mar May Exports f.o.b. Imports f.o.b. 70 Narodowy Bank Polski

72 Statistical annex. Charts Chart Trade in services EUR million Jan Mar May July Sep Nov Jan Mar May July Sep Nov Jan Mar May July Sep Nov Jan Mar May Services credits Services debits Chart Foreign investment in Poland mln euro Jan Mar May July Sep Nov Jan Mar May July Sep Nov Jan Mar May July Sep Nov Jan Mar May Foreign direct investment Other investments liabilities Portfolio investments liabilities Foreign investment in Poland Chart Polish Investment abroad mln euro Jan Mar May July Sep Nov Jan Mar May July Sep Nov Jan Mar May July Sep Nov Jan Mar May Polish direct investment Portfolio investments assets Other investments assets Polish investment abroad Information Bulletin 5/

73 Chapter Seasonally adjusted time series Table Notes and coin in circulation (excluding vault cash) Period Raw Adjusted data data Seasonal adjustment period end totals factor million zloty 2008 Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Period Raw Adjusted data data Seasonal adjustment period end totals factor million zloty 2011 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Period Raw Adjusted data data Seasonal adjustment period end totals factor million zloty 2013 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Chart Notes and coin in circulation (excluding vault cash) raw and seasonally adjusted data million zloty Raw data Adjusted data Chart Notes and coin in circulation (excluding vault cash) seasonal adjustment factor Narodowy Bank Polski

74 Statistical annex. Seasonally adjusted time series Table M1 money Period Raw Adjusted data data Seasonal adjustment period end totals factor million zloty 2008 Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Period Raw Adjusted data data Seasonal adjustment period end totals factor million zloty 2011 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Period Raw Adjusted data data Seasonal adjustment period end totals factor million zloty 2013 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Chart M1 money raw and seasonally adjusted data million zloty Raw data Adjusted data Chart M1 money seasonal adjustment factor Information Bulletin 5/

75 Chapter 5 Table M3 money Period Raw Adjusted data data Seasonal adjustment period end totals factor million zloty 2008 Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Period Raw Adjusted data data Seasonal adjustment period end totals factor million zloty 2011 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Period Raw Adjusted data data Seasonal adjustment period end totals factor million zloty 2013 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Chart M3 money raw and seasonally adjusted data million zloty Raw data Adjusted data Chart M3 money seasonal adjustment factor Narodowy Bank Polski

76 Statistical annex. Seasonally adjusted time series Table Deposits of domestic sectors with MFIs Period Raw Adjusted data data Seasonal adjustment period end totals factor million zloty 2008 Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Period Raw Adjusted data data Seasonal adjustment period end totals factor million zloty 2011 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Period Raw Adjusted data data Seasonal adjustment period end totals factor million zloty 2013 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Chart Deposits of domestic sectors with MFIs raw and seasonally adjusted data million zloty Raw data Adjusted data Chart Deposits of domestic sectors with MFIs seasonal adjustment factor Information Bulletin 5/

77 Chapter 5 Table Deposits of households with MFIs Period Raw Adjusted data data Seasonal adjustment period end totals factor million zloty 2008 Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Period Raw Adjusted data data Seasonal adjustment period end totals factor million zloty 2011 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Period Raw Adjusted data data Seasonal adjustment period end totals factor million zloty 2013 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Chart Deposits of households with MFIs raw and seasonally adjusted data million zloty Raw data Adjusted data Chart Deposits of households with MFIs seasonal adjustment factor Narodowy Bank Polski

78 Statistical annex. Seasonally adjusted time series Table Deposits of corporations with MFIs Period Raw Adjusted data data Seasonal adjustment period end totals factor million zloty 2008 Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Period Raw Adjusted data data Seasonal adjustment period end totals factor million zloty 2011 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Period Raw Adjusted data data Seasonal adjustment period end totals factor million zloty 2013 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Chart Deposits of corporations with MFIs raw and seasonally adjusted data million zloty Raw data Adjusted data Chart Deposits of corporations with MFIs seasonal adjustment factor Information Bulletin 5/

79 Chapter 5 Table MFI loans to domestic sectors Period Raw Adjusted data data Seasonal adjustment period end totals factor million zloty 2008 Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Period Raw Adjusted data data Seasonal adjustment period end totals factor million zloty 2011 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Period Raw Adjusted data data Seasonal adjustment period end totals factor million zloty 2013 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Chart MFI loans to domestic sectors raw and seasonally adjusted data million zloty Raw data Adjusted data Chart MFI loans to domestic sectors seasonal adjustment factor Narodowy Bank Polski

80 Statistical annex. Seasonally adjusted time series Table MFI loans to households Period Raw Adjusted data data Seasonal adjustment period end totals factor million zloty 2008 Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Period Raw Adjusted data data Seasonal adjustment period end totals factor million zloty 2011 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Period Raw Adjusted data data Seasonal adjustment period end totals factor million zloty 2013 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Chart MFI loans to households raw and seasonally adjusted data million zloty Raw data Adjusted data Chart MFI loans to households seasonal adjustment factor Information Bulletin 5/

81 Chapter 5 Table MFI loans to corporations Period Raw Adjusted data data Seasonal adjustment period end totals factor million zloty 2008 Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Period Raw Adjusted data data Seasonal adjustment period end totals factor million zloty 2011 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Period Raw Adjusted data data Seasonal adjustment period end totals factor million zloty 2013 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Chart MFI loans to corporations raw and seasonally adjusted data million zloty Raw data Adjusted data Chart MFI loans to corporations seasonal adjustment factor Narodowy Bank Polski

82 Statistical annex. Methodological notes 5.4 Methodological notes Table Basic statistical data Information contained in Table is derived from the Statistical Bulletin of the Central Statistical Office [GUS]. Definitions of the categories presented in the Table can be found in the GUS publications. 1 Data presented in pts. 1, 2, 6, 7, 10 and 12 comprise national economy entities regardless of their ownership type, i.e. public sector entities (state-owned entities, units of local government and mixed ownership, where public sector entities prevail) and private sector entities. The private sector includes units of private domestic ownership (among others: companies, cooperatives, natural persons conducting economic activities, social organizations, associations, foundations), private foreign ownership ( among others: foreign enterprises branches, foreign representatives, partnerships with exclusive foreign capital share) and mixed ownership with a private sector unit capital majority or lack of sectors majority in unit capital. 2 The corporate sector comprises entities, which conduct their economic activities in the fields of: forestry, including the provision of services; marine fishing; mining, manufacturing; electricity, water and gas production and supply; construction; wholesale and retail trade; repair of motor vehicles, motorcycles as well as personal and household goods; hotels and restaurants; transport, storage and communication; real estate renting and related business activities, renting machines and equipment without an operator and of personal and household goods; computer and related activities; other business activities; sewage and refuse disposal, sanitation management and other sanitation services; recreational, cultural, sporting and other services. 3 According to the Polish Statistical Classification of Economic Activities [PKD], the notion of industry applies to the following sections: mining, manufacturing and electricity, gas and water production and supply. 4 Data on the sold production of industry (pt. 1), and the construction and assembly production (pt. 2) refer to economic entities with of more than 9 employees. 5 Data on the value of the sold production of industry (pt. 1) and the construction and assembly production (pt. 2) are disclosed net without the due value added tax (VAT) and the excise tax, while they include subsidies for specific purposes to products and services in the so-called base prices. 6 Construction and assembly production data (pt. 2) refer to works performed on commission in Poland by the business entities of the construction sector, i.e. classified under construction according to the PKD. 7 Information on the sold production of industry (pt. 1) and the construction assembly production (pt. 2) are disclosed without seasonal adjustments. Information Bulletin 5/

83 Chapter 5 8 Data on employed persons include persons employed on a full and part-time basis in the main place of work. Employed persons include: persons employed on the basis of a labour contract; owners and co-owners of units engaged in economic activities including contributing family members; outworkers; agents and persons employed by agents; members of agricultural production co-operatives. Data presented in the Bulletin do not include private farmers or employees of budget entities conducting activity within the scope of national defence and public safety. 9 Unemployment rate (pt. 9) is calculated as a percentage share of the unemployed in the civilian population i.e. total of employed and unemployed persons over 15 years of age. 10 Revenues from privatisation do not constitute the current revenues of the state budget; instead they finance the budget deficit (pt. 11). 11 Data on financial results of enterprises (pt. 12) are presented as prescribed by the amended Accounting Act dated 29 September 1994 (uniform text Journal of Laws 2002 No.76, item 694, with later amendments). Table Financial market basic information Information comprised in Table has been derived from Narodowy Bank Polskid (save for the data in pt. 5, supplied by the Warsaw Stock Exchange). 1 Interest rates in Table 2 are presented on an annual basis at the level which was binding on the last day of a given month. The average monthly interest rate has been given only for the weighted average yield on purchased T-bills or NBP moneymarket bills. 2 As from January , the NBP no longer sets the central bank discount rate. 3 Total reserve requirements (pt. 2, col. 12) pertain to the volumes declared by banks and binding on the last day of the month. Since 28 February 2002, the total reserve requirements are held exclusively on NBP accounts. 4 Information on treasury bill tenders (pt. 3, except for the stocks of bills in circulation at the end of the month col. 18) comprises data from tenders conducted within one month. The average yield on bills purchased is weighted by the share of the sales of bills with different maturities in the total value of bills purchased. The stock of bills in circulation at month end has been determined on the basis of the agreed maturity, calculated from the day after the tender which resulted in the sale of the bill. The above stock does not include bills in circulation which do not stem from tenders. 5 Information on tenders for NBP money-market bills (pt. 4, except for the stock of bills in circulation at month end col. 24 comprises data from tenders conducted within one moth. The average yield on bills purchased is weighted by the share of the sales of bills with different maturities in the total value of bills purchased. 82 Narodowy Bank Polski

84 Statistical annex. Methodological notes 6 The below presentation of indices comprises precise data involving the situation of the largest (WIG 20), medium (mwig40) and small stock companies (swig80) 7 WIG20 index has been calculated since April 16, 1994 based on the value of portfolio with shares in 20 major and most liquid companies in the main stock market. The initial value of WIG20 index was 1000 points. It is an price index and thus when it is calculated it accounts only for prices of underlying shares whereas dividend income is excluded. The WIG20 index may not include more than 5 companies from a single exchange sector. 8 mwig40 index is successor of MIDWIG index and has been calculated since December 31, 1997 and comprises 40 medium size companies listed at WSE. The initial value of index was 1000 points. mwig40 is an price index and thus when it is calculated it accounts only for prices of underlying shares whereas dividend income is excluded. The mwig40 index excludes WIG20 and swig80 index participants and foreign companies listed at WSE and other markets with the market capitalization at the ranking date above 1 billion. 9 swig80 index is successor of WIRR index that has been calculated since December 31, 1994 and comprised 1% of smaller companies listed at WSE. The initial value of index was 1000 points. swig80 is an price index and thus when it is calculated it accounts only for prices of underlying shares whereas dividend income is excluded. The swig80 index excludes WIG20 and mwig40 index participants and foreign companies listed at WSE and other markets with the market capitalization at the ranking date above 100 M. 10 The indices comprise companies from all the quotation markets. 11 Capitalization refers only to domestic companies. 12 The P/E ratio shows the relation of the market price to net earnings and is calculated as a quotient of the total market value of companies at month end to their aggregated profits and losses generated within the last 4 quarters, for which financial data are available. 13 The turnover ratio shows the relation between the value of sold shares to the average value of shares quoted in a given month. 14 The monthly turnover value and the turnover ratio comprise the continuous quotation and fixing. Table PLN/USD and PLN/EUR daily exchange rates The information has been based on the data of Narodowy Bank Polski. 1 NBP average exchange rate is the official exchange rate used for statistical and accounting purposes. Information Bulletin 5/

85 Chapter 5 2 The average PLN/USD and PLN/EUR exchange rates and the USD/EUR ratio were calculated as the arithmetic average of the NBP average exchange rates for a month (based on daily exchange rates) Monetary statistics Narodowy Bank Polski releases monetary statistics based on data received from monetary financial institutions (MFI), which comprise banks operating in Poland and branches of foreign credit institutions and foreign banks, credit unions and money market funds. 1 Sectoral classification Financial sector comprises the following sub-sectors: 1 monetary financial institutions 2 (including the central bank and other monetary financial institutions). In Poland, the concept of other monetary financial institutions applies to banks, credit unions (SKOK) and money market funds; 1 2 insurance corporations and pension funds; 3 other financial intermediaries (including financial leasing companies, factoring companies, brokerage offices, investment funds, and financial companies created for securitization); 4 financial auxiliaries (including bureaus de change, bourses, hire purchase institutions); Non-financial sector comprises the following sub-sectors: 1 state-owned corporations, 2 private corporations and co-operatives, 3 individual entrepreneurs, 4 farmers, 5 individuals, 6 non-profit institutions serving households. 1 As from January 2012 the MFI definition does not encompass money market funds as none of the invesmtner funds fulfill the definition. 2 In accordance with the ECB definition, monetary financial institutions (MFIs) comprise financial institutions whose business is to receive deposits and/or close substitutes for deposits from entities other than MFIs and, for their own account, to grant credits and/or to make investments in securities. 84 Narodowy Bank Polski

86 Statistical annex. Methodological notes In the publications of Narodowy Bank Polski, claims and liabilities of banks to the nonfinancial sector will be presented in accordance with the EU standards, i.e. sub-divided into three sectors: 1 households comprising: individuals, farmers, individual entrepreneurs, 3 2 non-financial corporations comprising: state-owned corporations, private corporations and co-operatives (including: individual entrepreneurs with more than 9 employees). 3 non-profit institutions serving households: (separate legal entities, which serve households. Their principal resources, apart from those derived from occasional sales, are derived from voluntary contributions in cash or in kind from households, from payments made by general governments and from property income). General government- comprises the following sub-sectors; 1 central government (including public governing bodies, government administration bodies, state control and law protection bodies, courts and tribunals, state universities, state institutions of culture and welfare etc.); 2 local government (including local administrative offices [at gmina and poviat level], local parliaments, public elementary schools, institutions of culture financed by local governments, welfare institutions, etc.); 3 social security funds (comprise the Social Insurance Institution and the Agricultural Social Insurance Fund and the funds they manage, and the national healthcare Fund and its branches). Table Average MFI Interest Rates on Outstanding Amounts, PLN Denominated Data on zloty denominated businesses refer to all businesses at the end of the reporting month, these concluded prior to the reporting month and still binding as well as new businesses. This interest rate is a quotient of interest on average zloty denominated business by average volume of businesses per reporting month, commissions and other charges excluded. 3 Natural persons conducting business activities on their own account, with a maximum of 9 employees. Information Bulletin 5/

87 Chapter 5 The interest rate is calculated based on data received from the following banks (18): 1 Powszechna Kasa Oszczędności Bank Polski S.A. 2 Bank Polska Kasa Opieki S.A. 3 Bank BPH S.A. 4 Bank Handlowy w Warszawie SA 5 ING Bank Śląski S.A. 6 Bank Zachodni WBK S.A. 7 mbank S.A. 8 Bank Millennium S.A. 9 Bank Gospodarki Żywnościowej S.A. 10 Raiffeisen Bank Polska S.A. 11 mbank Hipoteczny S.A. 12 Krakowski Bank Spółdzielczy 13 Bank Spółdzielczy w Brodnicy 14 Bank Gospodarstwa Krajowego 15 Bank Ochrony Środowiska S.A. 16 BNP Paribas Bank Polska S.A. 17 Credit Agricole Bank Polska S.A. 18 Santander Consumer Bank S.A. At the end-december 2013, the above banks held 74% of deposits of residents and 71% of credit to households and non-financial corporations. Table Average MFI Interest Rates on New Business, PLN Denominated Information refers to agreements carried out in a given reporting month. Renegotiated existing agreements shall be deemed new businesses. Interest rates in the statistics on new businesses differ from those in Table The formula is applied to statistical information on new businesses, also known as Narrowly Defined 86 Narodowy Bank Polski

88 Statistical annex. Methodological notes Effective Rate (NDER). The concept of Narrowly Defined Effective Rate was coined as an opposite to widely understood effective interest rate or Real Interest Rate (RIR). The NDER included, the new business statistics provides RIR for the second category of consumer and house purchase loans. As opposed to the NDER, which covers for interest costs of capital the real interest rate incorporates all charges paid by the borrower. These charges are most of all commissions (brokers included) but also compulsory loan insurance premiums against death or unemployment of the borrower. The Table sample of banks applies. Table Average MFI Interest Rates on New Business, EUR Denominated General rule of calculating interest rate are the same as for Table (see star-matched lines) and Table The Table and sample of banks applies as well. General comments on tables The figures refer to the end of each reporting month and have been derived from balance sheets received from the banks within the framework of the Banking Reporting Information system (BIS) and from the balance sheet of Narodowy Bank Polski and credit unions (SKOK) and money market funds. 2 The presentation is structured in accordance with the ECB standards. 3 Assets in Tables 5.1.8, 5.1.9, and are shown gross of provisions, accumulated depreciation and write downs (except for securities presented at a market price). 4 Apart from external assets/liabilities debt securities issued and partly capital and reserves, all categories reflect operations with residents. Table Balance sheet of Narodowy Bank Polski assets and liabilities 1 The item credits, loans and other claims to domestic residents (assets col. 1) comprises receivables from granted loans, including rediscount, lombard, refinancing for central investments, loans granted from foreign credit facilities, open market operations, other loans and receivables from current and fixed term deposits 2 Debt securities issued by domestic residents (assets col. 5) are securities held by Narodowy Bank Polski. 3 Securities and other shares and other equity issued by domestic residents (assets col. 8) at the moment in the case of NBP they include only fixed financial assets (equity). 4 External assets (assets col. 11) include all assets of non-residents denominated in zloty and foreign currencies. Information Bulletin 5/

89 Chapter 5 5 Fixed assets (assets col. 12) include total fixed assets except for financial fixed assets. 6 Other assets (assets col. 13) include interest due and not due on the above-listed operations, deferred costs, inter-branch settlements and other assets excluding fixed assets. 7 Deposits of domestic residents (liabilities col. 2) represent liabilities on overnight deposits, deposits with agreed maturity, reserve requirements, auction deposits (open market operations), separated funds and other deposits. 8 Debt securities issued (liabilities col. 6) represent liabilities on the NBP debt securities issued by NBP. 9 Capital and reserves (liabilities col. 7) in the case of the NBP it comprises equity i.e. authorised capital, as well as reserve fund and provisions, which include specific provisions, accumulated depreciation and valuation allowances. 10 External liabilities (liabilities col. 10) include all liabilities of non-residents denominated in zloty and foreign currencies. 11 Other liabilities (liabilities col. 11) include interest on the above-mentioned categories of liabilities, deferred income, inter and intra-mfi settlements, other liabilities and financial performance. Table Aggregated balance sheet of other monetary financial institutions assets and liabilities 1 The category credits, loans and other claims to domestic residents (assets col. 1) include current accounts, reserve requirements, open market operations, deposits, loans and credits, debt purchased, realised guarantees and sureties, other claims, interest due and claims on securities purchased under repurchase agreements. 2 Debt securities issued by domestic residents (assets col. 5) held by other monetary financial institutions. 3 Money Market Funds participation units purchased by other MFIs (assets col. 9). Starting from January 2012 the list of Polish monetary financial institutions (MFIs) does not include money market funds (MMFs), as no investment fund meets the criteria of MMF definition as set forth in the regulation of the European Central Bank No. 883/2011 of 25 August 2011 amending Regulation (EC) No. 25/2009 concerning the balance sheet of the monetary financial institutions sector (ECB/2008/32, ECB/2011/12. At present the MFI sectors includes banks and credit unions. As a consequence of the above change shares/units issued by MMFs deleted from the list of MFIs and held by banks have been reclassified to Holdings of shares and other equity issued by domestic residents-other domestic residents. 88 Narodowy Bank Polski

90 Statistical annex. Methodological notes 4 Securities and other shares and other equity issued by domestic residents (assets col. 10) include shares, investment fund participation units, investment certificates and fixed financial assets (shares). 5 External assets (assets col. 13) include all assets of non-residents denominated in zloty and foreign currencies. 6 Fixed assets (assets col. 14) include total fixed assets except for financial fixed assets. 7 Other assets (assets col. 15) include vault cash i.e. cash and other cash equivalents held at other monetary financial institutions, as well as other claims and interest due and not due from all sectors, settlement accounts, claims on various debtors, deferred income and expenditure, other financial assets, value adjustments, rights issue, other assets, other operations, interest on securities purchased under repurchase agreement. 8 Deposits and other liabilities to domestic residents (liabilities col. 1) represent overnight deposits, deposits with agreed maturity, blocked deposits, deposits redeemable at notice, received credit and loans, including refinancing, auction (open market operations) and claims from cash collateral (classified to with agreed maturities ), other liabilities and claims on repurchase agreements, subordinated claims save for those in securities issued. 9 Money Market Funds participation units issued by the MMF (liabilities col. 9). Zero-sum in Money market fund shares/units results from change indicated in pt. 3 above. 10 Debt securities issued (liabilities col. 10) are liabilities on own debt securities issued by other monetary financial institutions and subordinated claims in securities issued (purchased by residents and non-residents). 11 Capital and reserves (liabilities col. 11) are divided into: a) core fund comprising share paid-in capital, called-up capital unpaid, own shares, accumulated reserves, general risk provisions, reserve capital and retained earnings, b) supplementary funds i.e. revaluation reserves and other supplementary funds specified in Banking Law Act (assigned both to residents and non-residents) other components of equity capital, c) provisions, including specific provisions, impairment allowances, mortgage notes reserves (resident, non-resident), specific provisions for off-balance liabilities (resident, non-resident), general risk provisions (resident, non-resident). 12 External liabilities (liabilities col. 15) include all liabilities of non-residents denominated in zloty and foreign currencies, except for reserves included in point 11, which comprise residents and non-residents as well as issue of debt securities and subordinated claims in securities purchased by non-residents. 13 Other liabilities (liabilities col. 16) include interest on the above-mentioned liabilities, settlement accounts, liabilities to creditors, deferred income and expenditure, suspended revenue, other liabilities from financial instruments, other liabilities, exchange rate fluctuations resulting from the conversion Information Bulletin 5/

91 Chapter 5 of subordinated liabilities, reserves for risk and expenditures not associated with the basic activities of the reporting bank, subordinated liabilities, other operations, interest on subordinated liabilities, value adjustments profit/loss during approval procedures, current year profit/loss. Table Credits, loans and other claims to domestic residents households and nonfinancial corporations Table includes detailed breakdowns into two key sub-sectors (households with specified individuals and non-financial corporations) grouped under Other domestic sectors presented in col. 4 assets (loans and other claims on other domestic sectors) of Table Aggregated balance sheet of other monetary financial institutions. As at the end of December 2013, households and non-financial corporations amounted to 94.5% of the assets disclosed in col. 4 Table Table Deposits and other liabilities households and non-financial corporations Table includes detailed breakdowns into two key sub-sectors (households with specified individuals - and non-financial corporations) grouped under Other domestic sectors presented in col. 4 liabilities (deposits and other liabilities to other domestic sectors) of Table Aggregated balance sheet of other monetary financial institutions. As at the end of December 2013, households and non-financial corporations amounted to 89.5% of the liabilities disclosed in col. 4 Table Table Consolidated balance sheet of monetary financial institutions assets and liabilities. 1 Table comprises a consolidated balance sheet of monetary financial institutions. 2 In the assets and liabilities of the above-mentioned balance sheet, domestic inter MFI operations have been netted out. 3 Starting from January 2012 the list of Polish monetary financial institutions (MFIs) does not include money market funds (MMFs), as no investment fund meets the criteria of MMF definition as set forth in the regulation of the European Central Bank No. 883/2011 of 25 August 2011 amending Regulation (EC) No. 25/2009 concerning the balance sheet of the monetary financial institutions sector (ECB/2008/32, ECB/2011/12. As a consequence of the above change shares/units issued by MMFs deleted from the list of MFIs and held by banks have been reclassified to Holdings of shares and other equity issued by domestic residents-other domestic residents (assets col. 7) and zero-sum in Money market fund shares/units (liabilities col. 8) 90 Narodowy Bank Polski

92 Statistical annex. Methodological notes 4 Other assets (assets col. 10) and currency in circulation (liabilities col. 1) were decreased by cash in vaults of other monetary financial institutions. Table M3 and counterparts Table presents money supply M3 and its counterparts with a monthly frequency. Each category is broken down by instruments (loans, deposits, securities, etc.) and sectors of the economy. The scope and the presentation format are adjusted to standards used by the European Central Bank. Starting from March 2002, broad money M3 became basic analytical and publication category of money supply in Poland. Table Monetary aggregates Currency in circulation (excluding vault cash) Overnight deposits and other liabilities Households Non-monetary financial institutions Non-financial corporations Non-profit institutions serving households Local government Social security funds M1 Deposits and other liabilities with agreed maturity up to 2 years and blocked deposits Households Non-monetary financial institutions Non-financial corporations Non-profit institutions serving households Local government Social security funds Deposits redeemable at notice up to 3 months M2 Repurchase agreements Debt securities issued with maturity up to 2 years M3 Table Reserve money and counterparts The table presents reserve money of the central bank and its counterparts (official reserve assets, refinancing credit, open market operations, net credit to central government, other items net) with a monthly frequency. Transactions statistics Starting from end- September 2012, information on transactions and growth rates in key monetary categories has been included in M3 and counterparts balance sheet sheet format (including transaction data to be found at and Financial Statistics/M3 and Counterparts/ Transactions complement data on outstanding amounts with information on developments arising from financial transactions between monetary financial institutions (MIF) and other sectors in the economy. The approach to calculate transactions adopted by Narodowy Bank Polski (NBP) consistent with the European Central Bank (ECB) methodology allows for Information Bulletin 5/

93 Chapter 5 estimating the value of transactions when actual financial transactions are not reported directly by reporting institutions. The change in outstanding amounts between two subsequent reporting periods is affected by both financial transactions and developments arising from non-transactions. In order to present developments in a certain instrument that are the result of financial transactions only it is necessary in line with the ECB methodology to remove from the difference in two subsequent end-month outstanding amounts changes arising from non-transactions. Transaction data provide more accurate and analytically meaningful information on growth rates in monetary categories. Information on operations other than transactions, i.e. adjustments, cover change in outstanding amounts resulting from: 1 revaluations: revaluations of securities, write offs/write-downs of loans, 2 reclassifications and other adjustments, e.g. reporting errors and other statistical factors, 3 exchange rate adjustments. Calculation of monthly transactions and growth rate The starting point for calculating monthly growth rate is the computation of monthly changes arising from transactions (F tm ), calculated based on the difference in outstanding amounts between two subsequent reporting months (L t L t-1 ) where L t stands for the reporting month t and L t-1 for the previous reporting month t-1), adjusted for monthly changes in nontransactions, i.e. reclassifications (C tm ), exchange rate changes (E tm ) and revaluations (V tm ) F t M = (L t L t-1 ) C t M Et M Vt M Having calculated monthly transactions (F tm ) one can proceed to calculating monthly growth rate (a tm ) according to the following formula: M a t = F M t L t-1 In order to obtain monthly growth rate in percentage terms the above formula is multiplied by 100. The difference between the formula for the calculation of monthly growth rate adjusted for non-transactions and the formula for not adjusted growth rate s t M is in the value of CEV t M which is deducted from the difference in outstanding amounts between two subsequent reporting months (L t L t-1 ) a t M = (L t L t-1 ) CEV t M *100 versus s t M = L t L t-1 * 100 L t-1 L t-1 92 Narodowy Bank Polski

94 Statistical annex. Methodological notes Methodology for the compilation of transactions can be found at Statistics/Monetary and financial statistics/m3 and counterparts/methodology for the compilation of transactions.pdf Statistical methods for the balance of payments in Poland (tables ; ; ; ; ; ; ; ; ; ; ; ; ) Institutional aspects Introduction Narodowy Bank Polski (NBP) is responsible for compiling and publishing Poland s balance of payments (b.o.p.) and related statistics (e.g. the international investment position (i.i.p.), external debt, foreign direct investment (FDI) statistics, reserve assets). Legislative provisions Under the Act on Narodowy Bank Polski (NBP) of August 29, 1997, published in the Dziennik Ustaw (Journal of Laws) of 1997, No. 140, Item 938, the NBP is obligated to compile the balance of payments and the international investment position statement and report thereon to Parliament. The Act on Narodowy Bank Polski and the Prawo dewizowe (Foreign Exchange Act), published in the Journal of Law of 2002, No. 141, Item 938, specify the reporting requirements. Under these acts and other legal regulations, NBP is authorized to request data for compiling balance of payments statistics. Other legal regulations are (1) the Regulation of the Minister of Finance dated October 23, 2009, published in the Journal of Law of 2009, No. 184, Item 1437, and (2) the Resolution of NBP s Management Board dated November 19, 2009, published in the Dziennik Urzedowy NBP (Official Journal of NBP) of 2009, No. 18. In cases of non-compliance with legal requirements, sanctions are imposed on non-reporting agents in the form of a fine that is regulated by the Penal and Fiscal Code (Kodeks Karny Skarbowy), as published in the Journal of Laws of 1999, No 83, Item 930. Narodowy Bank Polski publishes data on the balance of payments as a service to the public. External cooperation NBP co-operates with domestics organizations (mainly with the Central Statistical Office) and foreign institutions. The data necessary for the compilation of balance of payments are provided by several institutions. The CSO forwards to NBP data on foreign trade and international trade in services, in line with methodology jointly developed by both institutions. Data on trade in goods and Information Bulletin 5/

95 Chapter 5 services from abroad are used by the CSO to calculate the rest of the world accounts in the national accounts statistics (GDP). The CSO also provides data on migration statistics, which are used to estimate income from Poles working abroad and foreigners in Poland and the information from the Household Budget Survey. The NBP has been collecting data from the CSO also needed to update the register of entities engaged in the operations included in the balance of payments. Narodowy Bank Polski receives from the Ministry of Finance (MF) data on foreign transactions of the government sector. The MF also provides information that is used in compiling balance of payments current account, i.e. the data on the import of used cars from the EU (data is not recorded by the CSO). Data on foreign travel (Poles and foreigners) is collected by and sent to NBP by the Institute of Tourism. The Social Insurance Institution shall provide NBP with data on the number of foreigners, which are paid for social security and health as well as data on pensions paid abroad. The Ministry of Labor and Social Policy shall provide NBP with data on the number of statements by employees willing to provide employment to foreigners as well as data on the number of employment permits issued - this is used in estimating income from employment of foreigners in Poland and remittances. Narodowy Bank Polski also cooperates in the methodology of balance of payments with international institutions such as the European Central Bank (ECB), Eurostat, International Monetary Fund (IMF), Organization for Economic Cooperation and Development (OBWR), World Bank (WB), Bank for International Settlements (BIS). Users Data on the b.o.p., the i.i.p., the external debt, the official reserve assets, the international reserves and foreign currency liquidity are posted on NBP s website and are thus made available to users. Moreover, data and publications is forwarded to the Parliament, the Government, the CSO and to private and public research institutes, universities, rating agencies, etc. Analytical papers on bop are published on the NBP website. B.o.p., i.i.p. and direct investment statistics are supplied to the ECB, the European Commission (Eurostat), the IMF, the OECD and the World Bank on a regular basis. 94 Narodowy Bank Polski

96 Statistical annex. Methodological notes Statistical system The data collection system The Polish balance of payments compilation system is based on direct reporting reported on monthly as well as quarterly basis by residents involved in transactions with non-residents, public statistics surveys as well as administrative data sources. The system provides for compiling the balance of payments with a detailed item-by-item breakdown. Credit and debit entries are available for part items. Net entries are derived from pure stock data. Geographical breakdown is available for data since Reporting agents Pursuant to the reporting obligation, national entities are required to send information on the financial account of the balance of payments and its income directly to NBP. Data on foreign transactions of the Ministry of Finance is provided by financial agents to the government (i.e. Bank Gospodarstwa Krajowego and Narodowy Bank Polski). Substantial portion of data on the current account is collected and published by external institutions (CSO data on goods and services, the Institute of Tourism data on international travel). Reporting thresholds Entities of public finance sector with total assets, liabilities and equity at year-end equal or over PLN 500 million report to NBP on monthly basis, and Entities of public finance sector with total assets, liabilities and equity at year-end equal to PLN 26 million and below PLN 500 million report to NBP on quarterly basis. Natural persons whose receivables and liabilities unrelated to their business activity at year end are equal to or above PLN 7 million report to NBP on quarterly basis. Other residents (excluding public finance sector entities, natural persons, investment entities which keep securities accounts and banks) whose total amount of assets, liabilities and equity capitalat year-end is either equal to or greater than PLN 300 million report to NBP on monthly basis and residents whose total amount of assets, liabilities and equity capital at year-end is higher than PLN 10 million and lower than PLN 300 million report to NBP on quarterly basis. Data avaialbility The monthly b.o.p. is published 30 working days following the end of a respective month. The b.o.p. is compiled quarterly and distributed three months following the end of the reference quarter. Detailed release calendar is available on NBP website. Information Bulletin 5/

97 Chapter 5 Breakdowns in the monthly b.o.p. are limited in detail. The quarterly b.o.p. is available with detailed instrument/category and sectoral breakdowns. Data checks At the individual level data is automatically checked during the transmission when uploaded to the database. The data is also checked at an aggregated level through analysis of time series for each component. Flows are reconciled with relevant stocks. Moreover, the data is cross-checked with other sources, e.g. information on relevant stocks from b.o.p and monetary statistics, database of T-bonds central register, securities databases, internet, press, data on privatisations, etc. Revision policy Monthly b.o.p. data: 1 first revision when the data of the following month become available; 2 next revision when data of the relevant quarter is revised or published; The quarterly b.o.p. data is routinely revised: 1 first revision when data of the following quarter become available; 2 next revision when Q4 data is available (i.e. end-march); 3 further annual revisions, when data referring to corresponding annual i.i.p. become available or is revised (i.e. end-september). Publication The data on b.o.p, i.i.p., the external debt, the official reserve assets, the international reserves and foreign currency liquidity is released simultaneously to all interested parties by posting them on NBP s website. Publication schedules are also posted on the website. More detailed data on the b.o.p., i.i.p., external debt, reserve assets, direct investment and relevant analyses are published by NBP: 1 Balance of Payments of the Republic of Poland on a quarterly basis; 2 Foreign Direct Investment in Poland on an annual basis; 96 Narodowy Bank Polski

98 Statistical annex. Methodological notes 3 Polish Direct Investment Abroad on an annual basis. Moreover, the hereinbelow NBP publications also comprise the b.o.p. data: 1 Preliminary Information on a monthly basis; 2 Information Bulletin on a monthly basis; 3 NBP s Annual Report on an annual basis Balance of payments 4 (tables ; ; ; ; ; ; ; ; ) The balance of payments is a statistical statements that summarizes economic transactions between Poland and all other countries (i.e., between Polish residents and non-residents) in a defined period of time. The balance of payments incorporates the current account, the capital account, the financial account, errors and omissions, and the official reserve assets The current account The current account comprises transactions in goods, services, income, and current transfers Goods Trade in goods item of the balance of payments includes the value of exchange of goods with foreign countries which comprises transactions between residents and non-residents, including but not limited to: 1 transactions leading to the change in ownership of goods; these are mainly purchase/sale transactions, however the change in ownership of goods may also result from free-of-charge transfer (donations, aid in-kind), as well as from the in-kind contributions by foreign investors or from of financial lease of goods (such as means of transport, machinery and equipment); 2 transactions involving goods for processing; this trade is presented in the balance of payments at its gross value i.e. the value of goods for further processing, whereas upon further processing, the total value of goods for further processing and the value of further processing service, i.e. processing of those goods; 3 transactions involving repairs of goods (net value of repair services). 4 The international standards were defined in the following publications: Balance of payments and International Investment Position Manual, 6th edition, 2009, International Monetary Fund, OECD Benchmark Definition of Foreign Direct Investment, 2008, OECD, Balance of payments Vademecum, Eurostat, 2010, European Union balance of payments/international investment position statistical methods, European Central Bank, 2007, System of National Accounts, 2008, Inter-Secretariat Working Group on National Accounts, European System of Accounts ESA 1995, Eurostat, 1996 Information Bulletin 5/

99 Chapter 5 Trade in goods does not include the purchase and sale transactions of monetary gold carried out between central banks. Specific features of data collection The main source of data on goods in the Polish balance of payments is Foreign Trade Statistics (FTS) compiled by the Central Statistical Office (CSO) on the basis of INTRASTAT declarations (for intra-european Union trade) as well as from the Single Administrative Documents, SAD (for extra EU trade); this data is published by the CSO under the foreign trade item. Due to the fact that the international methodological standards are nearly the same in case of compilation of trade in goods with foreign countries for the balance of payments and for the national accounts purposes, NBP and the CSO agreed on the principles of transition from the foreign trade data in the FTS into the trade in goods data in the balance of payments and national accounts. In order to obtain the relevant data, the following adjustments must be made: 1 the decrease in the value of foreign trade data on the import side by the value of costs of transport included in the invoices drawn upon the CIF basis; 2 additional estimation of the trade in goods. Additional estimation of the trade in goods with foreign countries, made for the balance of payments and for national accounts relates to the turnover which was not registered in the FTS. It includes the following three groups of goods: 1 goods transported by tourists (in tourist traffic), which were purchased for resale; 2 other goods transported across the border without either the INTRASTAT declarations or the SAD documents being filled in (these include mainly the exported goods transferred abroad in bigger quantities without either the INTRTASTAT declarations or the SAD documents, such as vegetables, fruit, furniture, footwear, clothing); 3 foreign trade data is increased by the value of imports of second-hand cars from European Union, which is not included in INTRASTAT system due to the low reporting thresholds for imports of cars. This data is obtained from Ministry of Finance which collects it for fiscal purposes. Deviations from international standards Transactions concerning repairs of goods (which should be included in trade in goods according to international standards) are not recorded in the INRTASTAT declarations. 98 Narodowy Bank Polski

100 Statistical annex. Methodological notes Services Transport services include the services related to transport of goods (freight), transport of passengers and other services connected with the abovementioned transport services, e.g. loading and unloading of containers, storage and warehousing, packaging and repackaging, towing and traffic control, maintenance and cleaning of equipment, rescue operations. The trade in services concerning travel apply to the non-residents` expenditure in Poland and the expenditure of Poles abroad due to travel. This category includes expenditure on accommodation, catering and services as well as goods purchased by tourists for their own needs (whereas the objects purchased for resale are classified as goods). Subject to the objective of travel, the expenditures are classified as business travel (including these of the seasonal and cross-border employees and other business travels) and personal travels (health, study and other). In addition to the transport services and foreign travel, there is a third type of services other services. This category includes a number of transactions related to communication, construction, insurance, finance, and information technology, patent fees, royalties and licence fees, other business services (e.g. merchanting and other trade-related services, operational lease and other business services), personal, cultural, and recreational services as well as government services. Generally, the revenues include the value of services rendered by residents to non-residents, whereas the expenditures include the value of services rendered by non-residents to residents. On the other hand, in accordance with the international standards, certain services are presented in the balance of payments in a special way. Therefore, construction services are divided into services rendered abroad (the expenditures include the costs of those services incurred by residents) and the ones performed at home (the revenues include the costs of services incurred by non-residents). The merchanting is presented on the net basis (revenues minus expenditures), always on the side of revenues, while the insurance services are expressed as a difference between premiums and claims. Specific features of data collection The data on trade in services both transport services and other services is collected by the Central Statistical Office directly from enterprises rendering and acquiring such services. The data is collected on a quarterly and annual basis and is broken down by required component type and country. Furthermore, the value of services related to transport of goods is increased by the value of services resulting from the reclassification of a given part of the value of goods. This refers to the necessity of considering the fob-based value of goods in the balance of payments. In the FTS, only the value of export is expressed on the fob basis, whereas the value of imported goods is shown on the cif basis. Thus the decrease in the value of goods and the reclassification of the costs of transport and insurance services to a relevant category of services are required. Some values are estimated. The estimates include: Information Bulletin 5/

101 Chapter 5 1 transfer from the cif base to the fob base in the area of import of goods included in FTS, 2 share of the transport costs in the payment for the export of goods executed by Polish carriers, 3 share of individual types of costs (according to the means of transport) in the abovementioned estimated values. The value of export of services related to transport of goods is also increased by the costs of transport rendered by Polish carriers and included in the invoices of trade in goods. The source of data for the compilation of travel in the balance of payments is the data of Institute of Tourism, which carries out surveys on travel. Deviations from the international standards In the above described procedure of increasing the value of transport services by the adjustments of trade in goods resulting from the transfer from the cif base to the fob base all corrected amounts are classified as transport services, while insurance services are not separated Income Compensation of employees Compensation of employees comprises foreign transfers related to payment for work performed by non-residents employed in Poland and Poles employed abroad i.e. persons who have been working abroad for less than one year. Compensation of employees is calculated with the use of a new estimation method. This method rests to a great extent on determining the number of Poles working abroad, period of their employment as well as the level of their compensation and their willingness to transfer their money to Poland. Major data source for estimating the number of Poles working abroad is the CSO data on migration, data derived from LFS (household survey carried out by Polish Central Statistics Office) as well as data from those countries in which Poles have found employment. Remaining elements of the new estimation method have been derived, to a great extent, from the NBP survey carried out in selected European countries. The estimation methods for expenses and revenues are similar. The number of non- residents employed in Poland is estimated based on data derived from Ministry of Labor and Social Policy on number of work permits issued and on the data from the Social Insurance Institution (ZUS) on non-residents for whom payments on account of labour are made. The same sources of data is used for estimates of workers remittances included under current transfers of other sectors in balance of payments both for revenues and expenses. 100 Narodowy Bank Polski

102 Statistical annex. Methodological notes Direct investment income Income on direct investment comprises both income on equity capital and income on debt. The income on equity comprises dividends attributable to a direct investor and declared for a given reporting year (as regards public companies), share in profit (as regards limited liability companies), transferred profits of branches and reinvested earnings (loss per direct investor is deemed negative reinvested earnings). The income on debt, on the other hand, is included in the balance of accrued interest on loans extended and obtained by direct investors. Data on direct investment income is derived directly from residents` reports. The data comprise also estimated reinvested earnings, which have been presented as net reinvested income since 1996 i.e. excluding loss, in accordance with the OECD recommendations. Portfolio investment income In case of securities with the ISIN code data on portfolio investment income in the balance of payments is calculated on the accrual security-by-security base The source of data for these calculations is security-by-security reports collected directly from Polish securities holders, issuers and financial institutions (securities trading intermediaries) and data on characteristics of securities derived from the database maintained by Narodowy Bank Polski. This database is supplied with data derived from the National Depository for Securities, Centralised Securities Database maintained by the ECB and data reported by Polish issuers. In case of securities bearing no ISIN code data on income is reported directly by reporting entities on memorial base. Securities are broken down by security type (equity securities, long-term debt instruments, money market instruments) and by sector of resident paying or receiving the revenue (general government, banks, other sectors). As regards income on equity securities, only dividends are registered in the income category. All other incomes or losses on equity securities (especially income or loss resulting from the difference in purchase price and sale price of the security) are registered on the financial account of the balance of payments, in the portfolio investment category. Other investment income Other investment income is registered on accrual base. It comprises income on financial instruments which are regarded as other investments of the financial account and income on official reserve assets. Income on other investment of the financial account comprises: interest on loans extended and received, interest on deposits including interest on repos, and other payments related to income on property. The amount of interest comprises interest due: paid and unpaid. Data on income on official reserves include income on debt securities, interest on deposits and interest on repos Current transfers Current transfers are defined in the balance of payments as one-way transactions such as donations, free-of-charge exports and imports of goods and services under international aid Information Bulletin 5/

103 Chapter 5 schemes, which are not accompanied by change in value of external account receivables or account payables. Transfers are executed, both in cash and in kind, in favour of government institutions or other sectors (private). Funds received or paid by the Polish government sector that is central government and local government units constitute government transfers. These are the funds received from European Union institutions, countries and international organisations as well as paid in favour of these institutions and countries to finance current expenditures of the government such as humanitarian aid, medicines, training, etc. These include also membership fees for the EU and international organisations outside the EU. The category includes also taxes and payments made by non-residents in favour of Polish government sector. Revenues from obligatory social insurance as well as retirement and annuity benefits paid by the Social Insurance Institution (ZUS) in favour of nonresidents, and indemnities paid by the government vis-à-vis non-residents constitute other government transfers. Private transfers (of other sectors) comprise transfers of workers remittances and other transfers. The workers remittances comprise transfers of wages and salaries of persons working abroad and considered to be residents of the country in which they work. In compliance with the IMF recommendations, a person staying or intending to stay for a year or longer on the territory of a given country is a resident of that country. In such a case, funds transferred in favour of the person s family are registered in the Current transfers as workers remittances. On the other hand, in case of the stay lasting shorter than a year, the person is treated as non-resident and its income is registered in the balance of payments under Income as compensation of employees. The other transfers of non-government sector include the value of private transfers abroad of residents natural persons and other entities of national economy. The other transfers of non-government sector made in kind (free-of-charge transfers of goods and services in foreign trade) and in cash include: 1 donations and aid received from abroad, as well as rendered in favour of non- residents, related to execution of objectives not connected with investment (e.g. humanitarian aid, food, clothing, medicines, training); 2 taxes and fees in favour of foreign governments; 3 membership fees; 4 retirement and annuity benefits received by residents from abroad; 5 inheritance; 6 alimony; 7 fines and indemnity (e.g. related to breach of contracts, product forgery, forgery of trademarks, patents); 102 Narodowy Bank Polski

104 Statistical annex. Methodological notes 8 competition and lottery winnings; 9 fees for transfer of sportsmen. Specific features of data collection The source for government transfers category in the balance of payments is the Regional Branch of Narodowy Bank Polski which keeps settlements of banking accounts of Ministry of Finance that are used for government transfers (both regarding UE and the other international organisations). The data on other transfers such as retirement and annuity benefits paid by Polish government is derived directly from the Social Insurance Institution (ZUS) which is in charge of such transfers. The source used for compilation of workers` remittances has been described in the chapter on compensation of employees. The data on transfers of other sectors is compiled based on numerous data sources. The data on transfers of enterprises is collected in the frame of survey on international trade in services carried out by the CSO. The other transfers of other sectors on revenue side are mainly based on LFS (household survey made by Polish Central Statistics Office); information from Ministry of Finance and the Social Insurance Institution (ZUS) is used as additional sources. Deviations from the international standards Since 2011, in connection to adjustments in trade in goods data collection process, the data on transfers in kind compiled based on INTRASTAT and SAD systems are not subject to registeration Capital account The basic components of the capital account in the balance of payments are capital transfers representing transfers of rights to tangible assets, i.e. donations and funds included in nonreturnable grants, specially assigned to fixed assets financing, debt write-offs by the creditor, transfer of funds related to the acquisition or disposal of nonfinancial and non-produced assets. Capital transfers are compiled separately for the government sector and other sectors. Capital transfers of the government sector reflect the value of funds received from EU institutions, countries and international organisations, as well as funds transferred by the Polish government in favour of these institutions. Funds in cash are allocated free-of- charge to financing investment in fixed assets e.g. construction of roads, motorways, bridges, schools, hospitals, etc. The category of capital transfers of the government sector comprises write-offs of receivables, both principal and interest. Capital transfers of other sectors comprise donations and grants specially assigned to fixed assets financing, which were received from or transferred abroad by nongovernment units. Information Bulletin 5/

105 Chapter 5 Acquisition and disposal of non-produced nonfinancial assets comprises purchase and sale of patents, copyrights, licenses and trademarks, purchase and sale of land to foreign embassies located in Poland as well as purchase and sale of land by Polish embassies abroad. Specific features of data collection Capital transfers of government sector are compiled in the balance of payments on the base of the data derived directly from the banking accounts of the Ministry of Finance. Capital transfers of other sectors are calculated based on data collected under the survey on international trade in services carried out by the CSO which, apart from the data on turnover of services, collects information on current transfers and capital transfers Financial account The financial account comprises financial transactions involving direct investment, portfolio investment, other investment, and financial derivatives Direct investment Narodowy Bank Polski compiles data on direct investment in compliance with the OECD definition. The term direct investment abroad denotes an investment made by a resident entity in one economy ( direct investor ) in an entity resident in an economy other than that of the investor ( direct investment enterprise ) aimed at attaining a long-term profit from the capital involved. The direct investment enterprise denotes an enterprise in which direct investor owns at least 10% of the voting power in the decision making body of the company. The direct investment capital comprises equity capital, paid in cash or in kind, capital adjustment, reinvested earnings and other capital (mostly credits extended by investors, the so-called inter-company loans). Reinvested earnings denote the part of profits, accruing to a direct investor, which remains in the direct investment enterprise and which is allocated to its further development. As mentioned earlier, in accordance with the OECD and IMF new methodology, beginning from 1996, the reinvested income has been computed on the net basis, that is after loss deduction. Specific features of data collection Data on Polish direct investment abroad and foreign direct investment in Poland have been compiled based on survey on Polish direct investors and Polish direct investment enterprises. 104 Narodowy Bank Polski

106 Statistical annex. Methodological notes Data on direct investment have been collected from the entities exceeding general reporting thresholds based on its sum of external assets and liabilities and meeting additionally criterion of 10% share in the voting power in the decision making body of the company Portfolio investment Equity securities comprise all kinds of tradable shares and stocks, including investment certificates (shares) of collective investment funds. These comprise also participation units in collective investment funds, investment certificates and depository receipts (e.g. ADR or GDR). Debt securities comprise all kinds of long-term and short-term debt securities including government bonds, corporate bonds, T-bills, short-term corporate debt securities and negotiable certificates of deposit. Debt securities are classified as long-term securities or money market (short-term) instruments based on their original maturities. Long-term debt securities are securities with original maturity of at least one year. All other debt securities are classified as money market instruments (short-term debt securities). Debt securities category comprises also debt securities with embedded financial derivatives (e.g. convertible bonds or callable/putable bonds). Financial derivatives (i.e. those that constitute a separate financial instrument) are excluded from the portfolio investment category and registered under Financial derivatives item a separate category of the balance of payments. Repo transactions are also excluded from the portfolio investment category and registered in Other investment category. Specific features of data collection The source of data on portfolio investments item in the balance of payments are securityby-security reports on positions and transactions collected directly from Polish holders of securities (in case of portfolio assets), issuers and intermediaries in trading in securities (in case of portfolio liabilities). In case of securities bearing the ISIN code, the data used in the process of verification and compilation of reporting data is the data on characteristics of securities e.g. coupons, prices, corporate events derived from the database kept by Narodowy Bank Polski. This database is supplied with data derived from National Depository for Securities, Centralised Securities Database maintained by ECB and the data derived directly from Polish issuers. In case of securities issued by the State Treasury on the domestic market (bonds and T-bills) data on transactions is calculated based on data on positions derived from the National Depository for Securities (for government bonds) and NBP`s own data (for T-bills). In case of securities with no ISIN codes data on transactions is reported directly by reporting entities. In case of securities issued by Polish entities within foreign markets the residual approach is applied. The data from the issuers is modified in the process of compilation with the use of the data on transactions executed by Polish holders of these securities. Securities are broken down by sector or resident-issuer of securities (for liabilities), sector of resident-holder of securities (for assets) as well as by country of issuer for portfolio assets. Information Bulletin 5/

107 Chapter Other investment Other investment comprises all financial transactions that are not covered by direct investment, portfolio investment or official reserve assets. Other investment covers: trade credits, loans, currency and deposits as well as other assets and liabilities. Trade credits Trade credits are estimated based on stocks of assets and liabilities related to advances extended and payments deferred in imports and exports of goods and services. Credits and loans Extended and received credits and loans, apart from the breakdown into long-term (with original maturity exceeding one year) and short-term (with original maturity of up to one year), are registered in a breakdown by the sectors of economy. Credit turnover comprises not only drawings and repayments in cash but also drawings and repayments in the form of goods and services delivery, cancellation, interest capitalization and credit restructuring. Current accounts and deposits On the assets side the current accounts and deposits are calculated on the base of stocks of claims on cash in the form of foreign currency (only the banking sector), current accounts and deposits in credit institutions and foreign banks. This category comprises: current accounts and deposits (including overnight deposits), term deposits, deposits with the time limit of termination, blocked deposit accounts and repo transactions. On the liabilities side the current accounts and deposits are calculated on the base of stocks of liabilities on current accounts and deposits held by non-residents. This category comprises: current accounts and deposits (including overnight deposits), term deposits, deposits with the time limit of termination, blocked deposit accounts and repo transactions. The current accounts and deposits cover also liabilities on money security excluding initial margin for derivatives. Other assets and liabilities Other financial assets and claims on non-residents comprises among others assets which result from difference of the time of transaction and the time of corresponding payment e.g. claims on the share in profit or dividend declared but not yet paid or converted into another financial instrument; funds deposited on current accounts in other intuitions i.e. other than foreign banks and credit institutions; claims on returnable variation margins (initial margin) for derivatives. The item other liabilities to non-residents covers among others liabilities which result from transactions implying difference of the time between the transaction and the time of corresponding payment (e.g. dividend declared but not yet paid or converted into another financial instrument) and liabilities on returnable variation margins (initial margin) for derivatives. 106 Narodowy Bank Polski

108 Statistical annex. Methodological notes Method of data collection Since 2010 data on other investment, both Polish investment abroad and foreign investment in Poland have been compiled on the base of reports directly supplied by Polish reporting entities Financial derivatives The Financial derivatives constitute the separate category of the balance of payments. It comprises all derivatives with symmetrical risk such as futures, forwards, swaps, IRS, CIRS, CDS as well as instruments with unsymmetrical risk such as options. This item includes both derivatives settled by delivery of basic instrument and derivatives settled in cash. The profit or loss on transactions involving financial derivatives is classified into this category. The data on financial derivatives are also available in geographical breakdown. The criterion of a first identified contractor is used to determine national status of the parties of transaction. The breakdowns by the type of a basic instrument (foreign exchange rates, interest rate, commodity, shares, credit derivatives, others) and by pairs of currencies (in case of foreign exchange instruments) or by settlement currency (for other types of derivatives) are available. Specific features of data collection The source of data on financial derivatives for the balance of payments is reports collected directly from Polish entities having positions which emerged as a result of transactions on derivatives with non-residents. Financial derivatives cover all financial flows resulting from settlements of transactions involving financial derivatives, except returnable initial margins. In the discussed category variation margins and option premiums are registered. Data is registered on gross basis Official reserve assets Official reserve assets comprise transactions with non-residents related to: monetary gold, reserve position in the IMF, foreign exchange and other claims, in convertible currencies. Official reserve assets item comprises balance of transactions carried out by NBP with respect to instruments included in official reserve assets, (including the balance of turnover on currency and deposits accounts in banks abroad, balance of transactions executed in foreign currencies in NBP counters, balance of turnover of foreign securities, balance of repos and transactions on financial derivatives; change in reserve position in the IMF as well as purchase and sale of monetary gold. Information Bulletin 5/

109 Chapter 5 Method of data collection Data on official reserve assets are collected based on accounting system of NBP International Investment Position (table ) The international investment position is a statistical statement that covers the subset of financial assets and liabilities that have an international character, compiled at a specified reporting period. IIP balance ascertains whether the given state is a net payer or net receiver. Changes in stock of assets and liabilities are influenced by external turnover, exchange rate valuations, revaluation adjustments of assets and liabilities as well as other adjustments. The international investment position was compiled on the basis of data originating from: Narodowy Bank Polski, the Ministry of Finance, the agents who service the Government loans (NBP and the Bank Gospodarstwa Krajowego) (NBP, Bank Gospodarstwa Krajowego), Polish banks performing external settlements, Polish companies participating in foreign trade. External assets and liabilities are broken down by financial instruments and sectors of national economy. Direct investment Direct investment is according to the OECD definition an international investment made by a resident entity in one economy (direct investor) with the objective of establishing a lasting interest in an enterprise resident in an economy other than that of the investor (direct investment enterprise). Foreign assets arising from foreign direct investment (FDI) comprise attributable to Polish shareholders the balance sheet net value of direct investment enterprises (i.e. the value of equity capital attributable to Polish investors). This capital entails effectively contributed share capital and accumulated reserves, as well as undistributed profits less losses. The balance on foreign assets arising from direct investment includes also loans and advances extended by Polish direct investors to foreign companies, in which they hold shares (so-called intercompany loans ). Foreign assets arising from foreign direct investment also comprise assets vis-á-vis provision of goods and services, advance payments to foreign investors against future deliveries, other debt-instruments issued by capital linked companies and residents; real-estate investment abroad. 108 Narodowy Bank Polski

110 Statistical annex. Methodological notes Liabilities on foreign direct investment in Poland, comprise the value of Polish direct investors equity capital, attributable to foreign direct investors, as well as liabilities arising from loans and credits received from those investors. Loans and credits drawn by foreign investors from Polish companies, in which they hold shares, reduce the value of liabilities on foreign investment. Liabilities on foreign direct investment in Poland also include: liabilities vis-á-vis provision of goods and services, advance payments received from shareholders against future deliveries, other debt instruments issued by capital-linked companies and non-residents stateside real-estate investment. Both foreign assets arising from foreign direct investment and liabilities on foreign direct investment in Poland have been calculated based on reports provided by Polish direct investors and Polish direct investment enterprises. Portfolio investment Portfolio investment is the category of international investment that covers investment in equity and debt securities, excluding any such instruments that are classified as direct investment or reserve assets. The source of data is security-by-security portfolio investment reports on stocks and flows collected directly from Polish holders, Polish issuers and financial intermediaries. For securities bearing the ISIN code, descriptive data, e.g. prices, coupons, corporate events from the securities database, maintained by NBP are used in reported data verification and compilation. This database is fed with data derived from Polish National Depository for Securities (KDPW), maintained by Centralised Securities Database (CSDB) as well as data derived directly form Polish issuers. For securities without the ISIN code data is received directly from the reporting agents. Data on securities non-resident holdings of securities issued by Polish entities on the domestic market is reported mainly by financial intermediaries involved in dealing such securities. Among the data sources there are: banks being depositaries, brokerage houses, central depositories of securities and clearing houses (such as KDPW). For Polish Treasury securities issued in domestic market the stocks are supplied by Polish National Depository for Securities (T-bonds) and Narodowy Bank Polski (T-bills). For securities issued by Polish Treasury, banks or enterprises on external markets data on stocks is derived from individual reports submitted by issuers. For securities issued by Polish entities in foreign markets, the residual approach is applied. The data on resident holdings on such securities is collected and used to adjust, in the process of compilation, the issue data of these securities. Data on portfolio investment assets of Polish government (securities issued by non-residents) is derived from the bank holding the government accounts. Portfolio assets held by other domestic entities are reported directly by respective investors. Valuation of portfolio assets and liabilities is carried out based on market prices. Separation of external liabilities in the form of direct and portfolio investment is carried out by estimation of equity securities issued by polish banks and enterprises, held by foreign direct investors and registered with polish brokerage houses. The estimation is based on data on big players among Polish public companies. Polish investors separate direct and Information Bulletin 5/

111 Chapter 5 portfolio investment recorded under external assets in reports they are obliged to prepare for NBP. Providing the type of capital link to the non-resident issuer is required in the reporting form. IIP stocks and flows in portfolio investment is settled in the following manner: for securities bearing the ISIN code in relation to valuation adjustments calculated by NBP based on security-by-security approach, for securities without the ISIN code in relation to valuation adjustments, exchange rate fluctuations and other adjustments as reported by reporting agents. Financial derivatives Financial derivatives are financial instruments linked to a specified financial instrument or indicator or commodity, through which specific financial risks can be traded in financial markets in their own right. Financial derivatives can be categorized by instrument such as options, forwards and credit derivatives, or by market risk as currency swaps, interest rate swaps, etc. The financial derivatives category includes all symmetric risk instruments, such as futures, forwards, swaps, IRS, CIRS, CDS and asymmetric risk instruments, such as options. In terms of coverage, derivatives settled by underlying instrument delivery, as well as derivatives with cash settlement are included. Assets comprise all asymmetric risk instruments issued by a non-resident and purchased by a resident and symmetric risk instruments provided that their end-of period valuation result was positive. Liabilities comprise all asymmetric risk instruments issued by a resident and purchased by a non-resident and symmetric risk instruments provided that their end-of period valuation result was negative Stocks and flows in financial derivatives are settled in relations to valuation adjustments, exchange rate fluctuations and other changes as reported by reporting agents. Geographical breakdowns are available (geographical allocation by first counterparty). Breakdowns by underlying instrument (foreign exchange, interest rate, commodities, equity securities, credit derivatives and other) and by domestic sector are available. Breakdowns by currency pairs (for foreign exchange derivatives) or by settlement currency (for other types of derivatives) are also available. Other investment The other investment item is a residual category that includes all financial transactions not covered under direct investment, portfolio investment, financial derivatives or reserve assets. Other investment can be further subdivided into trade credits, loans/currency and deposits and other assets/other liabilities. Other investment can be further subdivided into: Trade credits. Assets and liabilities arising from foreign trade credits include the so-called company credits, i.e. balances of assets and liabilities arising from extended and received advances and deferred payments in imports and exports of goods and services. Information on these credits is derived from business organizations. 110 Narodowy Bank Polski

112 Statistical annex. Methodological notes Other loans and credits. This category comprises assets and liabilities arising from drawn and outstanding foreign loans and advances, excluding trade credits and loans from foreign investors. Furthermore, liabilities include loans in the current account, debt vis-à-vis overdrafts on accounts held by credit institutions, foreign banks and entities performing financial settlements for capital groups. Trade credits are presented in separate items of foreign assets and liabilities. Loans from foreign investors are shown as a component of direct investment. Data on assets and liabilities arising from loans can credits are derived from: 1 NBP balance sheet, 2 the agents who service government loans (NBP and Bank Gospodarstwa Krajowego), 3 stocks and flows of business organisations drawing and extending loans and credits. Currency, current accounts and deposits. In the case of the banking sector, the discussed category of foreign assets and liabilities com-prises: 1 In the area of foreign assets: balance of funds on current accounts (nostro) and accounts with agreed maturity (de-posit) in banks abroad; additionally in the banking sector: claims on securities purchased within repurchase agreements; foreign currency (vault cash); claims on monetary collateral. In the area of foreign liabilities (banks only): 1 balance of funds on current accounts (loro) and accounts with agreed maturity (deposit) of foreign banks (non-residents); 2 balance of funds on current accounts and accounts with agreed maturity (deposit) of non-residents other than banks: claims on reverse-repo (purchase of securities under repurchase agreement); balance of funds on non-residents monetary accounts in bank brokerage houses; liabilities on monetary collateral (except initial margins for financial derivatives). Information on assets and liabilities arising from cash stocks, current accounts, and deposits is derived from: 1 statistical reports on assets/liabilities on current accounts and term deposit accounts reported by directly by Polish entities, 2 NBP accounting figures. Information Bulletin 5/

113 Chapter 5 Other foreign assets and liabilities This category covers data on assets and liabilities which can be further subdivide into: 1 Assets comprising: e.g. claims vis-a-vis share in profit/dividend not yet paid or turned over into another financial instrument; balance on transactional accounts held with institutions other than foreign banks and credit institutions; claims on initial deposits against financial derivatives. 2 Liabilities: claims on share in profit/dividend not yet paid or turned over into another financial instrument; claims on initial deposits against financial derivatives. Official reserve assets Official reserve assets comprise readily available, liquid foreign assets owned and fully controlled by Narodowy Bank Polski. These assets may be used for direct financing of the balance of payments deficit or for other policies of the monetary authority which aim to maintain the balance of payments equilibrium. Official reserve assets comprise: 1 monetary gold, priced at the average market price prevailing on the balance- sheet day; 2 special drawing rights (SDR); 3 reserve position in the International Monetary Fund; 4 cash, current accounts and foreign exchange in convertible currencies including: current accounts and accounts with agreed maturity held at foreign banks, valuated in accordance with the nominal value on the balance-sheet day; securities issued by foreign entities, quoted at the liquid market, valued in accordance with the average market price on a balance-sheet day; foreign currencies held at the NBP vaults, valued in accordance with the nominal value on a balance-sheet day; 5 other claims, which comprise the balances of claims on reverse repo transactions (purchase of securities under repurchase agreement), evidenced in books as extended loans and valued in accordance with the amount outstanding on a balance-sheet day. Narodowy Bank Polski accounting data is the source on the official reserve assets The official reserve assets (table ) The official reserve assets have been described in the International Investment Position (Table ). 112 Narodowy Bank Polski

114 Statistical annex. Methodological notes External debt (tables and ) Narodowy Bank Polski reports information on Poland s external debt in accordance with the following definition: Gross external debt is the amount, at any given time, of disbursed and outstanding contractual liabilities of residents of a country to non-residents to repay principal, with or without interest, or to pay interest, with or without principal. This definition was defined as the core definition. The above definition refers to gross debt, i.e. it refers to the particular foreign liabilities of Poland (with no deduction of Polish assets abroad). The term contractual liabilities stands for formal obligation to make a specific payment (principal instalment and/or interest). This excludes equity participations from external debt. The phrase principal with or without interest means that the concept of external debt also includes non-interest-bearing liabilities, as these also involve a contractual obligation to repay. The phrase interest with or without principal signifies that the concept of external debt also incorporates liabilities with no stated maturity (e.g. undated bonds). The term disbursed and outstanding excludes potential liabilities, e.g. the undistributed portions of existing credit facilities. The distinction between domestic and external (foreign) debt is based solely on the criterion of residence, regardless of the currency involved. The following categories of financial instrument have been included in the concept of external debt: 1 intercompany loans, 2 current balances and time deposits held by non-residents at Polish banks, 3 debt securities held by foreign investors, 4 trade credits, 5 other loans and credits (including financial leases), 6 other foreign liabilities (arrears of principal and interest). Information Bulletin 5/

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